The Journal. The Unraveling of OpenAI and Microsoft's Bromance
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Jan 28, 2025 A groundbreaking joint venture, Stargate, aims to invest $500 billion in AI infrastructure, raising eyebrows with Microsoft’s absence. The historical alliance between OpenAI and Microsoft is unraveling, revealing tensions over resources and competing goals. As tech leaders navigate this shifting landscape, the rivalry intensifies, with Elon Musk voicing his skepticism about the new initiative. This turmoil marks a dramatic evolution in corporate relationships within the AI sector.
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Stargate Announcement
- OpenAI CEO Sam Altman, President Trump, Oracle's CEO, and SoftBank's CEO announced Stargate, a $500 billion AI venture.
- Microsoft, OpenAI's biggest investor, was noticeably absent, despite their close relationship.
Partnership Beginnings
- OpenAI and Microsoft's partnership began in 2018, with Microsoft investing $1 billion in 2019.
- OpenAI gained access to Microsoft's computing power, while Microsoft got early access to OpenAI's software.
Resource Conflicts
- OpenAI's increasing need for computing power caused friction with Microsoft, who felt they were providing ample resources.
- OpenAI argued Microsoft wasn't meeting the agreement's resource requirements, threatening to use other platforms.