Microsoft will no longer be the exclusive provider of new cloud computing capacity to OpenAI — a new twist in their relationship that clears the way for OpenAI to work with Oracle and others on the $500 billion Stargate AI project announced by the companies Tuesday with President Trump at the White House.

Microsoft has clarified its partnership with OpenAI after the latter announced a $500 billion data center initiative.

Microsoft’s multi-year partnership with OpenAI is taking a new direction as the ChatGPT maker will no longer exclusively choose Microsoft Azure for new cloud capacity.

The software giant was previously the exclusive cloud provider for OpenAI and now retains right of first refusal.

If you've read about the Microsoft-OpenAI relationship over the past few years, you'd know that apart from its financial investments, Microsoft was also the exclusive cloud infra provider to OpenAI. While the former is still there,

Microsoft and OpenAI are loosening the tight bond that connects them. In future, OpenAI will be able to obtain cloud capacities for its AI from elsewhere.

Microsoft’s deal with OpenAI has ‘evolved’ to include a right of first refusal on supplying new capacity.

Microsoft has revised its agreement with OpenAI, allowing the AI company to partner with other cloud service providers (CSPs). However, Microsoft retains the Right of First Refusal (ROFR), giving it a priority to match any competing offers before OpenAI commits to other providers.