Microsoft loses status as OpenAI’s exclusive cloud provider

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loses status as OpenAI’s exclusive cloud provider

U.S. President Donald Trump speaks in the Roosevelt Room of the White House while SoftBank CEO Masayoshi Son, Oracle CTO Larry Ellison, and OpenAI CEO Sam Altman look on on January 21, 2025 in Washington, DC. Trump is expected to announce investment in artificial intelligence (AI) infrastructure.

Andrew Harnik | Getty Images News | Getty Images

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, the biggest investor in OpenAI and its principal cloud partner, is losing its designation as exclusive provider of computing capacity for the artificial intelligence startup.

In a

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on Tuesday,

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said that it’s still in a favorable position with OpenAI. Going forward, when OpenAI seeks additional capacity,

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will have the “right of first refusal” before OpenAI checks with other parties.

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 to invest billions of dollars in AI infrastructure in the U.S. Executives from those companies committed to invest an initial $100 billion and up to $500 billion over the next four years in the project, which will be set up as a separate company.

Oracle is a “key initial technology partner” alongside Arm,

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and Nvidia in setting up data center infrastructure, OpenAI said in a

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.

“The data centers are actually under construction,” Oracle Chairman Larry Ellison said at a press conference at the White House, alongside Trump. “The first of them are under construction in Texas. Each building is a half a million square feet. There are 10 buildings currently being built, but that will expand to 20 and other locations beyond the Abilene location, which is, which is our first location.”

Oracle shares jumped 7% on Tuesday.

In 2019, three years before the launch of ChatGPT,

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invested $1 billion in OpenAI, which committed to moving its services to Azure. As OpenAI’s computing needs expanded,

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signed contracts with third-party cloud providers, such as CoreWeave, to supplement its Azure cloud infrastructure.

Oracle entered the mix last year. The database software maker, which trails

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,

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and

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in the cloud market, said in

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that

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’s Azure AI platform would be extended to Oracle’s cloud.

OpenAI said on Tuesday that it will continue to increase consumption of Azure, and

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said OpenAI recently made “a new, large Azure commitment” for products and model training.

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still has rights to OpenAI’s intellectual property, which can go in products such as Copilot. And it still has the exclusive on supplying computing requests for OpenAI’s application programming interface.

But the relationship has shown signs of strain, and

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named OpenAI as a competitor in July.

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CEO Satya Nadella talked about OpenAI CEO Sam Altman’s big ambitions on a

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with investors Brad Gerstner and Bill Gurley that was released in December.

“What he wants to do, I have to accommodate for, so that he can do what he does,” Nadella said. “And he needs to accommodate for the discipline that we need on our end, given the overall constraints that we may have.”

WATCH: President Trump speaks on AI infrastructure investment

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