Following the joint announcement, Microsoft shares slipped about 1% in premarket trading on Monday as some investors saw the shift as the company losing a valuable competitive advantage. Microsoft has, in recent years, emerged as a major player in the AI race, benefiting from its early bet on OpenAI that allowed it to quickly launch AI technology across its products.
But tensions have been rising between the companies over the tie-up as OpenAI strikes cloud deals with rival companies and investors scrutinise Microsoft’s alliance with OpenAI. The Financial Times reported in March that Microsoft was weighing legal action against Amazon and OpenAI over a $50 billion cloud deal that could breach its exclusive cloud partnership.
Under the reworked partnership, Microsoft will remain OpenAI’s primary cloud partner and will hold a license to ChatGPT creator’s intellectual property through 2032. Microsoft will also not pay a revenue share to OpenAI.
–Reuters–
