Forgot your password?
Close
typodupeerror
AI Microsoft

OpenAI's Stargate Deal Heralds Shift Away From Microsoft 38

Posted by msmash from the growing-apart dept.
Microsoft's absence from OpenAI's Stargate announcement follows months of tension between the companies and signals a new era in which the longtime partners will be less reliant on each other. From a report: At a White House press conference, the ChatGPT maker announced Stargate, a venture with Oracle and tech investor SoftBank. The new company plans to spend up to $500 billion building new data centers in the U.S. to help power OpenAI's development.

The assembled leaders -- OpenAI's Sam Altman, Oracle's Larry Ellison, SoftBank's Masayoshi Son and President Trump -- discussed how AI could create jobs and even cure cancer. Microsoft CEO Satya Nadella was thousands of miles away, at the World Economic Forum in Davos, Switzerland. The developments show how the OpenAI-Microsoft partnership that helped trigger the generative-AI boom is drifting apart as each company focuses on its own evolving needs.

In the months leading up to the announcement, the two sides had been haggling over what to do about OpenAI's seemingly insatiable appetite for computing power and its contention Microsoft couldn't fulfill it even though their agreement didn't allow OpenAI to easily switch to others, said people familiar with the discussions. OpenAI is almost entirely reliant on Microsoft to provide it with the data centers it needs to build and operate its sophisticated AI software. That has been part of their agreement since Microsoft first invested in 2019. With the success of ChatGPT, OpenAI's need for computing power surged. Its executives have said ending the exclusive cloud contract could be crucial to compete with rival AI developers that don't have the same constraints.
This discussion has been archived. No new comments can be posted.

OpenAI's Stargate Deal Heralds Shift Away From Microsoft More

OpenAI's Stargate Deal Heralds Shift Away From Microsoft

Comments Filter:

  • Didn’t kiss the orange ones ring.

  • And didn't we already see this?

  • Oracle needs an full data center to run the DHD software

  • Daniel Jackson
    Jack O'Neill
    Samantha Carter
    Tealk
    Vala
    Cameron Mitchell
    Jacob Carter (Selmac)
    Master Bratac
    John Sheppard
    Dr Rodney Mackay
    Richard Woolsley
    Dr Nicholas Rush
    Eli Wallace

  • OpenAI gets to forge a relationship with different cloud vendors, as a preparation for ~2030 when their exclusivity contract with Microsoft ends.

    Oracle becomes the first cloud provider different from Microsoft that can handle OpenAI workloads, this gives them "second mover advantage". And also drives up utilization of their cloud which nowadays is the 4th cloud provider, half the size of third largest (and at risk of loosing the substantial TikTok USoA workload).

    Meanwhile, Microsoft has "first right of refu

  • AI has the worst Benefit Per Dollar of any tech.

  • Elon Hates This (Score:3)

    by WankerWeasel ( 875277 ) on Thursday January 23, 2025 @11:50AM (#65112335)

    Elon has been raging against this on X. He claims they don't have even $50 billion according to his "sources".

    While no one should believe a word that idiot says, it's hilarious to see him break from sucking Trump off and going against the administration. It's only a matter of time before their entire relationship publicly crumbles and it's going to be fun to watch the fireworks.

    • He's such a pissy little bitch. And with his little tantrum he let his real colors show: he's pissed that his off-brand xAI bullshit didn't get a huge heap of money despite all he's done to sell everyone out.

      He thinks he's the smartest guy in the world, but he's still not playing the game by the same rules - he thinks that his billionaire tit will give him a post-paid tat.

      Always get payment up-front from Trump.

      • Did you switch to talking about Trump in your last two statements or are you still talking about Elon?

        • I was talking about both. Elon still expects to get a return on his investment, completely ignoring all the times that Trump has declared bankruptcy to screw creditors.

          Elon is a creditor. He will end up getting screwed just as soon as he's no longer useful. Just like everyone else Trump has given the deadbeat treatment.

          • I see. I was reading "think's he's the smartest guy in the world" and "billionaire" and thinking those things apply to both.
  • History is replete with purveyors of miracle cures for what ails humanity. While it wasn't called cancer at the time, "curing cancer" was a pretty common claim for the potions and tinctures that one could spend hard earned money on. Do they occasionally sell something that has a benefit? Sure, statistically and as long as they aren't pushing actual poison, they may correct an upset stomach or achy joint every once in a while. But cure-alls don't exist. I have gotten old enough that when ever I hear phrase
    • Some snake oils were actually mixtures of alcohol, cocaine, and heroin. I'll bet that shit made ya feel pretty good for a brief moment, even if it wasn't a cure. I can't imagine anything about this AI trend feeling as good as that mixture would have felt. Though I do see the hangover after imbibing too much of it being somewhat similar.
      • Cannabis as well. Saw an old QI episode just last night where they discussed all the various ills Cannabis was supposed to cure.

        • I knew I was forgetting something they used in them. Yeah, anybody that's ever had any edibles can tell you how good imbibing cannabis can feel.

  • Not really.... (Score:3)

    by rwrife ( 712064 ) on Thursday January 23, 2025 @01:20PM (#65112607) Homepage
    Microsoft is interested in models that they can sell to businessess and other consumers, Stargate is a private AI cloud that is going to be used to generated 1000s of private patents that OpenAI/Softbank will share the revenue on.

  • Makes a Ton of Sense (Score:5, Funny)

    by organgtool ( 966989 ) on Thursday January 23, 2025 @01:53PM (#65112691)
    Oracle is the ideal company to host resources for OpenAI. Their cloud technology is widely acknowledged to be the best, their pricing is extremely upfront and fair, and their customers have nothing but nice things to say about them. This was easily the most obvious choice.

    • Re: (Score:1)

      by Tablizer ( 95088 )

      I hope Larry Ellison releases Larrycoin so MAGAs can earn zillions and buy the entire American continent from Greenland to the bottom of Chile. They'll finally have the chilly bottom they always wanted.

  • > .. Stargate .. The new company plans to spend up to $500 billion building new data centers in the U.S. to help power OpenAI's development.

    What ever happened to the distributed in the distributed Internet.

Slashdot Top Deals

"Out of register space (ugh)" -- vi

Close