Microsoft Secures Right of First Refusal for OpenAI's Computing Needs

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Microsoft Secures Right of First Refusal for OpenAI's Computing Needs
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Microsoft's partnership with OpenAI evolves as it gains the 'right of first refusal' when OpenAI requires additional computing capacity. This change was announced alongside President Trump's unveiling of the Stargate Project, a joint venture aimed at accelerating AI development with investments from OpenAI, Oracle, and Softbank.

Microsoft said it will now have "right of first refusal" when OpenAI asks for more computing capacity .

The change in their relationship was disclosed as part of President Donald Trump's announcement of the Stargate Project, a joint venture with OpenAI, Oracle and Softbank.US President Donald Trump, from left, Larry Ellison, co-founder and executive chairman of Oracle Corp., Junichi Miyakawa, chief executive officer of SoftBank Corp., and Sam Altman, chief executive officer of OpenAI Inc., in the Roosevelt Room of the White House in Washington, DC, US, on Tuesday, Jan. 21, 2025.

In 2019, three years before the launch of ChatGPT, Microsoft invested $1 billion in OpenAI, which committed to moving its services to Azure. As OpenAI's computing needs expanded, Microsoft signed contracts with third-party cloud providers, such as CoreWeave, to supplement its Azure cloud infrastructure.

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