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OpenAI's partnership with Microsoft is under strain: Report

Inshorts · 11m ago

OpenAI's partnership with Microsoft is under strain: Report

OpenAI's partnership with Microsoft is increasingly showing signs of strain, New York Times reported. The partnership, which OpenAI CEO Sam Altman once called "the best bromance in tech", began to show cracks after Altman's brief ouster by OpenAI's board, the report added. Microsoft has been increasingly hesitant in supplying OpenAI with the cash and computing power, the report further said.

Related News

Microsoft's AI edge under scrutiny as OpenAI turns to rivals for cloud services - The Economic Times

Economic Times

Economic Times · 1m ago

Microsoft's AI edge under scrutiny as OpenAI turns to rivals for cloud services - The Economic Times

Microsoft's AI edge is under scrutiny as OpenAI considers rivals Google, Oracle, and CoreWeave for cloud services, despite exclusive licensing deals bolstering Microsoft's Azure cloud business. OpenAI's potential public listing and renegotiation of its partnership with Microsoft could impact their stake in ChatGPT technology. While Microsoft's stock shows confidence, investor opinions on the partnership are divided, with Microsoft's AI capacity and expenditure under focus amidst rising competition and evolving market dynamics.

We don't own any part of OpenAI: Microsoft on UK regulator's probe

Inshorts · 1y ago

We don't own any part of OpenAI: Microsoft on UK regulator's probe

Microsoft doesn't own any portion of OpenAI and is only entitled to a profit share, a spokesperson said. This comes after UK's antitrust regulator said it'll review Microsoft and OpenAI's partnership. Microsoft President Brad Smith further said the only thing that changed following OpenAI CEO Sam Altman's return is that "Microsoft will now have a non-voting observer on OpenAI's board".

Inside Microsoft’s complicated relationship with OpenAI

The Verge

The Verge · 3m ago

Inside Microsoft’s complicated relationship with OpenAI

Cracks are appearing in the Microsoft-OpenAI partnership, a result of OpenAI's growing need for more compute power and desire to reduce dependence on Microsoft. Tensions have heightened around OpenAI's potential acquisition of AI coding tool Windsurf, which it wants exempt from Microsoft's contract. This discord might lead OpenAI to accuse Microsoft of anticompetitive behavior, prompting further regulatory scrutiny, as Microsoft's $13 billion AI investment and partnership terms with OpenAI face potential antitrust violations investigation.

Microsoft is no longer OpenAI's exclusive cloud provider | TechCrunch

TechCrunch · 8m ago

Microsoft is no longer OpenAI's exclusive cloud provider | TechCrunch

Microsoft is no longer the exclusive cloud provider for OpenAI's AI models. OpenAI has secured a major infrastructure deal with SoftBank, Oracle, and others. Microsoft now has "right of first refusal" on new OpenAI cloud computing needs but allows OpenAI to seek other providers if necessary. Microsoft will continue supporting OpenAI products and training with Azure. Despite this, key partnership elements remain intact, including access to OpenAI's IP and revenue-sharing arrangements through 2030.

Microsoft ends OpenAI exclusivity in Office, adds rival Anthropic

Arstechnica

Arstechnica · 8d ago

Microsoft ends OpenAI exclusivity in Office, adds rival Anthropic

Microsoft is ending OpenAI's exclusivity in Office 365, incorporating AI models from Anthropic alongside OpenAI's. This decision follows Anthropic's success in outperforming OpenAI in tasks like visual design and spreadsheet automation. The integration, aimed to offer more versatile AI capabilities, is set to be announced soon, with no change in pricing for Office's AI tools. Despite this move, Microsoft maintains a strong partnership with OpenAI, having invested over $13 billion in it.

OpenAI’s open language model is imminent

The Verge

The Verge · 2m ago

OpenAI’s open language model is imminent

OpenAI is preparing to release an open-weight language AI model, marking a significant move as the company seeks to restructure into a for-profit entity amidst ongoing negotiations with Microsoft. Unlike previous models, this one will be publicly accessible, allowing companies and governments to run it independently on platforms like Azure and Hugging Face. This open approach could strain the partnership between OpenAI and Microsoft, as it mirrors DeepSeek’s R1 model deployment.

Microsoft’s Nadella is building an AI empire. OpenAI was just the first step.

Livemint

Livemint · 1y ago

Microsoft’s Nadella is building an AI empire. OpenAI was just the first step.

Microsoft CEO Satya Nadella is aggressively expanding the company's AI capabilities by amassing AI talent, tools, and technology. While Microsoft has a partnership with OpenAI, Nadella has been building an in-house AI team to compete with his own partner. He recruited Mustafa Suleyman, a rival of OpenAI's co-founder, to lead Microsoft's AI efforts. Suleyman's team has developed their own AI model that could potentially replace OpenAI's technology in some Microsoft products. Nadella's strategy aims to keep Microsoft ahead in the AI race amidst competition from Google, Apple, and Amazon.

OpenAI Google partnership: OpenAI taps Google Cloud to boost computing capacity - The Economic Times

Economic Times

Economic Times · 2m ago

OpenAI Google partnership: OpenAI taps Google Cloud to boost computing capacity - The Economic Times

OpenAI has partnered with Google Cloud to expand its computing capacity, joining existing collaborators Microsoft, Oracle, and CoreWeave. The partnership, finalized in May, marks OpenAI's strategy to lessen its dependency on Microsoft and diversify its compute sources. This move is part of OpenAI's larger efforts, including the $500 billion Stargate project, to manage increased AI model demands. These developments exemplify emerging partnerships in the industry to address substantial computing needs.

OpenAI’s Unreleased AGI Paper Could Complicate Microsoft Negotiations

Wired · 2m ago

OpenAI’s Unreleased AGI Paper Could Complicate Microsoft Negotiations

OpenAI's unreleased "Five Levels of General AI Capabilities" paper complicates its partnership with Microsoft due to a contract clause on artificial general intelligence (AGI). If OpenAI declares AGI, Microsoft's access to future technologies would be limited, leading to potential renegotiations or termination of the $13 billion partnership. The paper's classification of AI stages might influence OpenAI's AGI declaration, which both sides perceive differently, affecting the negotiation dynamics and OpenAI's strategic leverage.

Elon Musk sues Sam Altman, accusing him of betraying OpenAI's mission of benefiting humanity

Business Insider

Business Insider · 1y ago

Elon Musk sues Sam Altman, accusing him of betraying OpenAI's mission of benefiting humanity

Tesla and SpaceX CEO Elon Musk is reportedly suing OpenAI, the research non-profit he helped found, claiming that the organization's partnership with Microsoft has deviated from its original mission. Musk argues that OpenAI's collaboration with Microsoft has transformed it into a "closed-source de facto subsidiary" that prioritizes maximizing profits for Microsoft instead of benefiting humanity. The lawsuit alleges that OpenAI's shift to a "capped-profit" structure breaches its initial agreement of being an open-source, non-profit company. Microsoft has invested significantly in OpenAI and has defended its ownership structure as serving the company's mission.

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