Microsoft Gets Right of First Refusal for OpenAI's Computing Needs

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Microsoft Gets Right of First Refusal for OpenAI's Computing Needs
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Microsoft has secured the 'right of first refusal' when OpenAI requests additional computing capacity, marking a shift in their partnership. This change was revealed alongside President Donald Trump's announcement of the Stargate Project, a joint venture involving OpenAI, Oracle, and SoftBank. While SoftBank, OpenAI's principal cloud partner, is no longer the exclusive provider of computing resources, Microsoft remains in a favorable position. OpenAI will continue to increase its Azure consumption, with Microsoft stating that OpenAI recently made a 'new, large Azure commitment' for products and model training.

Microsoft said it will now have"right of first refusal" when OpenAI asks for more computing capacity.

The change in their relationship was disclosed as part of President Donald Trump's announcement of the Stargate Project, a joint venture with OpenAI, Oracle and Softbank., the biggest investor in OpenAI and its principal cloud partner, is losing its designation as exclusive provider of computing capacity for the artificial intelligence startup.on Tuesday, Microsoft said that it's still in a favorable position with OpenAI.

‘The best experience': He's been on 30 trips with a company that links travelers who can see with those who can'tIn 2019, three years before the launch of ChatGPT, Microsoft invested $1 billion in OpenAI, which committed to moving its services to Azure. As OpenAI's computing needs expanded, Microsoft signed contracts with third-party cloud providers, such as CoreWeave, to supplement its Azure cloud infrastructure.

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