Previously, due to its contract with Microsoft, OpenAI could only use the Azure cloud infrastructure to perform computing tasks, but in a new contract this restriction was removed.
In a blog post, Microsoft announced that it has signed a new contract with OpenAI, which gives Microsoft a “Rent of Right of Way” or (ROFR) in the company’s cloud computing; That is, after this, Microsoft will be the first priority in hosting the cloud computing of OpenAI artificial intelligence models, but if Microsoft cannot meet the needs of this company, OpenAI can refer to another provider.
Of course, the main provisions of the Redmond giant’s initial contract with OpenAI will not change until 2030; For example, the API of OpenAI models remains exclusive to Azure; Also, the distribution of their income will be the same as before. Microsoft reportedly gets 20 percent of OpenAI’s revenue.
Microsoft’s new contract with OpenAI
Microsoft’s new contract has been announced almost simultaneously with the announcement of the Stargate project. This project, in collaboration with Softbank and Oracle, wants to build an artificial intelligence data center for OpenAI with an investment of 500 billion dollars in different regions of the United States.
Previously, OpenAI had announced the lack of computing capacity as the reason for the delay of its products, and it seems that this has become the cause of tension between this artificial intelligence company and Microsoft. However, in June 2024, under pressure from shareholders, Microsoft allowed OpenAI to sign an agreement with Oracle for additional computing capacity.
Of course, Microsoft’s contract with OpenAI still stands. This contract has a strange clause: it is assumed that the expiration date of the contract is 2030, if OpenAI has not achieved Artificial General Intelligence (AGI) by that year. Based on the definition agreed by the 2 companies, AGI is OpenAI’s advanced artificial intelligence systems that can generate at least $100 billion in revenue. If OpenAI gets hold of the system, Microsoft will lose access to OpenAI technology.
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