Tech Titans Unite: Microsoft, OpenAI, and Oracle's Groundbreaking AI Collaboration

Microsoft has revised key terms in its deal with OpenAI following the latter's joint venture with Oracle and SoftBank to build $500 billion of AI data centers in the US. The initiative, called Stargate, seeks to keep the US ahead in the global AI race against rivals like China.

Microsoft has updated significant terms in its contract with OpenAI as the ChatGPT creator announced a large-scale joint venture with Oracle and Japan's SoftBank Group to establish AI data centers worth $500 billion in the United States. The venture is aimed at advancing America's position in the global AI competition, particularly against China.

President Donald Trump endorsed the "Stargate" initiative at the White House, highlighting its potential to leverage Nvidia's chip technology. Since 2019, Microsoft has maintained an exclusive arrangement to build computing infrastructure for OpenAI, allowing OpenAI the latitude to engage with Oracle. Stargate is structured as a new entity where OpenAI retains equity, governance, and operational control, supported by other investors like UAE's MGX.

While Microsoft, along with Nvidia and Arm, serves as a technology partner in Stargate, it does not hold an equity position. SoftBank CEO Masayoshi Son will chair the board. Microsoft retains exclusive rights to OpenAI's API, secure revenue-sharing agreements, and access to OpenAI's intellectual property through 2030 under the existing contract, alongside new commitments to Microsoft's Azure cloud service.

(With inputs from agencies.)