Microsoft said on Tuesday that it has changed some key terms of its deal with OpenAI, the creator of ChatGPT, with Oracle and Japan’s Softbank Group for up to $500 billion in new AI in the US. has announced a joint venture to build data centers.
President Donald Trump gathered leaders of the “Stargate” effort at the White House on Tuesday to announce the deal, which he said is aimed at using Nvidia’s chips to help the United States beat China and the US in the global AI race. To help keep you ahead of other competitors.
Since 2019, Microsoft has entered into an arrangement with OpenAI that gives the Redmond, Washington-based company exclusive rights to build new computing infrastructure for OpenAI. Microsoft said in a blog post that it has “primarily approved OpenAI’s ability to create additional capacity for research and training of models”. This opened the door for OpenAI to work with Oracle.
Stargate is a joint venture structured as a new entity in which OpenAI has an equity stake, governance rights and operational control, said a person familiar with the deal. A separate board will be appointed by its founding members and its own CEO, the person said. The project will also have other investors including UAE firm MGX.
Microsoft, along with Nvidia and Arm, will be a “technology partner” in the new venture, but is not listed as an equity funder. According to an OpenAI statement posted on social media site X, SoftBank CEO Masayoshi Son will be chairman of the entity’s board.
But Microsoft said it still retains the exclusive right to offer OpenAI’s API — the technology shorthand for the application programming interface — as the primary way for software developers and business users to purchase OpenAI’s services. This means that Oracle will not be able to host OpenAI’s primary source of revenue.
Oracle did not immediately respond to a request for comment on Microsoft’s statements.
Microsoft said it has “revenue sharing agreements that go both ways” with OpenAI.
“Key elements of our partnership will continue through the term of our agreement through 2030, including our continued access to OpenAIs IP, our revenue sharing arrangements and our exclusivity on OpenAIs APIs,” Microsoft said. Microsoft said.
Referring to Microsoft’s Azure cloud computing service, Microsoft also said that “OpenAI recently made a new, larger Azure commitment that will continue to support all OpenAI products as well as training.”
