Don't want to spend money anymore! Microsoft is no longer the exclusive cloud provider for OpenAI

OpenAI and Microsoft's relationship has encountered a new rift.

On Tuesday, Microsoft announced that it would no longer serve as OpenAI's exclusive cloud service provider, but it retains a "right of first refusal" (ROFR) on OpenAI's new cloud service agreements, meaning that if Microsoft cannot meet demand, OpenAI can seek support from other cloud service providers.

This adjustment stems from OpenAI's announcement of a new artificial intelligence data center collaboration project with Oracle, which is funded by SoftBank and the UAE sovereign fund, and was officially unveiled at the White House in the presence of former President Trump.

In 2019, Microsoft invested $1 billion in OpenAI, becoming its exclusive cloud service provider and jointly building a supercomputer data center to train OpenAI's models. However, according to technology media outlet The Information, OpenAI executives began complaining last year about Microsoft's slow progress in building new data centers, prompting OpenAI to reach a collaboration agreement with Oracle with Microsoft's tacit approval.

Despite no longer being the exclusive cloud provider, Microsoft still retains the right to exclusively resell OpenAI models on the Azure cloud platform and can reuse OpenAI's intellectual property in its products. Microsoft stated that the current cooperation agreement between the two parties will last until 2030. Additionally, Microsoft enjoys 25% of OpenAI's revenue and has the right to share in the profits of its future products.

Currently, both parties are negotiating whether Microsoft's profit-sharing rights will continue when OpenAI transitions from a nonprofit organization to a for-profit company