OpenAI CRO warns Microsoft partnership failing after $50B AWS deal
OpenAI's relationship with Microsoft is showing some cracks, according to an internal memo from OpenAI's chief revenue officer.
While the memo appreciates Microsoft's support so far, it points out that OpenAI has struggled to reach enterprise customers through this partnership.
This frustration seems to be behind OpenAI's recent $50 billion deal with Amazon Web Services (AWS), announced in February, as it looks for better ways to grow its business.
Microsoft questions OpenAI's Azure compliance
Since 2024, OpenAI has been branching out, striking a $10 billion deal with Oracle and joining the Stargate AI data center project (which leaves Microsoft out).
Last year even saw internal discussion about publicly accusing Microsoft of anticompetitive behavior and considering a federal regulatory review, and while a temporary agreement eased things for a bit, the new AWS partnership has stirred up more legal questions.
Now, Microsoft is pushing back about whether OpenAI is sticking to its contract rules on using Azure for its models—a sign that both sides are rethinking how they work together as OpenAI eyes an IPO and keeps expanding its partnerships.