Microsoft has updated its agreement with OpenAI, allowing the AI company to source data center capacity from other cloud providers, although Azure remains the preferred option. This modification is underpinned by a right of first refusal favoring Microsoft, meaning that OpenAI must prioritize Azure first. This agreement accompanies the launch of the Stargate Project, a massive collaboration involving Oracle and Softbank to build a robust AI infrastructure in the U.S., valued at up to $500 billion, while retaining the partnership foundations with Microsoft.
Microsoft's new agreement with OpenAI permits using other cloud providers for data center capacity, while still favoring Azure as the primary option.
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