Microsoft relaxes data center grip on OpenAI amid 500bn dollars joint venture
- Microsoft , opens new tab on Tuesday said it has changed some key terms of a deal with OpenAI after the ChatGPT creator announced a joint venture with Oracle , opens new tab and Japan's SoftBank Group , opens new tab to build up to $500 billion of new AI data center s in the United States.
Since 2019, Microsoft has had arrangements with OpenAI that gave the Redmond, Washington-based company the exclusive right to build new computing infrastructure for OpenAI. Microsoft, in a blog post, said it has "approved OpenAI's ability to build additional capacity, primarily for research and training of models.
But Microsoft said that it still retains the exclusive right to offer OpenAI's API - technology shorthand for application programming interface, which is the main way that software developers and business customers buy OpenAI's services. That means Oracle will not be able to host OpenAI's primary source of revenue.Microsoft said it has "revenue sharing agreements that flow both ways" with OpenAI.
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