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 &#34;right of first refusal&#34; (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

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Microsoft is making slow progress in building new data centers, prompting OpenAI to reach a cooperation agreement with Oracle, which may be the reason why Microsoft is no longer the exclusive cloud provider for OpenAI. However, Microsoft still retains the "right of first refusal" for OpenAI's new cloud service agreement

- Microsoft announced it will no longer be the exclusive cloud service provider for OpenAI but retains a right of first refusal for new cloud service agreements.  
- This change follows OpenAI's new AI data center collaboration with Oracle, funded by SoftBank and a UAE sovereign fund, which was publicly announced at the White House.  
- Despite this shift, Microsoft maintains exclusive resale rights for OpenAI models on its Azure platform and continues to share in OpenAI's revenue.

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