Microsoft has backed away from pouring more money into OpenAI, straining relations.
Late last year, Sam Altman, OpenAI’s CEO, asked his counterpart at Microsoft, Satya Nadella, if the tech giant would invest billions of dollars in the startup.
Altman once called OpenAI’s partnership with Microsoft “the best bromance in tech,” but ties between the companies have started to fray. Financial pressure on OpenAI, concern about its stability and disagreements among employees of the two companies have strained their five-year partnership, according to interviews with 19 people familiar with the relationship between the companies.
Over the past year, OpenAI has been trying to renegotiate the deal to help it secure more computing power and reduce crushing expenses while Microsoft executives have grown concerned that their AI work is too dependent on OpenAI. Nadella has said privately that Altman’s firing in November shocked and concerned him, according to five people with knowledge of his comments.
In June, Microsoft agreed to an exception in the contract, six people with knowledge of the change said. That allowed OpenAI to sign a roughly $US10 billion computing deal with Oracle for additional computing resources, according to two people familiar with the deal. Oracle is providing computers packed with chips suited to building AI, while Microsoft provides the software that drives the hardware.
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