Microsoft no longer has exclusive status as OpenAI's cloud provider.

• OpenAI is no longer exclusively using Microsoft as its provider of computing capacity.
• Microsoft has announced that it will have "first dibs" on additional computing capacity when OpenAI requests it.
• The revelation of their relationship change was included in President Donald Trump's announcement of the Stargate Project, a joint project with OpenAI, Oracle, and Softbank.

OpenAI's principal cloud partner is no longer its exclusive provider of computing capacity.

Microsoft has been granted the "right of first refusal" to provide additional capacity to OpenAI before considering other options.

The Stargate Project, a joint venture with OpenAI and Softbank, was announced by President Donald Trump, and it involves investing billions of dollars in AI infrastructure in the U.S. The initial investment commitment from executives from those companies is $100 billion, with the possibility of up to $500 billion over the next four years. The project will be set up as a separate company.

Oracle is a "key initial technology partner" alongside Microsoft and in establishing data center infrastructure, OpenAI stated in a blog post.

"At a press conference at the White House, Oracle Chairman Larry Ellison announced that the data centers are under construction. The first of them are being built in Texas, with each building being a half a million square feet. Currently, there are 10 buildings being constructed, but this will expand to 20 and other locations beyond the Abilene location, which is the first location."

Oracle shares jumped 7% on Tuesday.

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

The cloud market leader, Microsoft, announced in June that its Azure AI platform would be integrated with Oracle's cloud.

On Tuesday, OpenAI announced that it will increase its consumption of Azure, and Microsoft revealed that OpenAI recently made a significant Azure commitment for its products and model training. Microsoft retains ownership of OpenAI's intellectual property, which can be used in products such as Copilot. Additionally, Microsoft remains the exclusive provider of computing requests for OpenAI's API.

In July, Microsoft named OpenAI as a competitor, and Microsoft CEO Satya Nadella discussed OpenAI CEO Sam Altman's ambitious plans on a podcast with investors Brad Gerstner and Bill Gurley in December.

"Nadella stated that in order for him to do what he wants, he must accommodate for the discipline required on his end, taking into account the constraints that may exist."

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