Going solo? Microsoft wants to be “self-sufficient in AI” — building its own chip cluster to reduce its reliance on OpenAI

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As a researcher, I find myself reflecting on the evolving dynamics between Microsoft and OpenAI, a partnership that has recently faced some turbulent times over the past few years. The roots of this tension can be traced back to the sudden removal of Sam Altman as CEO by OpenAI’s board of directors, who felt he was not consistently transparent in his leadership and operational decisions.

Since Sam Altman regained his position as CEO following a public outcry, the dynamics at the company have shifted noticeably. His colleagues, who had voiced their intent to depart if he was not reinstated, emphasized that “OpenAI’s strength lies in its people.” This sentiment has been echoed and is now shaping the company culture.

In the first month of this year, the company behind ChatGPT announced their ambitious Stargate project, a $500 billion plan aimed at establishing data centers throughout the U.S., which will provide essential infrastructure for their ongoing advancements in artificial intelligence.

The sudden action created a stir within the tech industry, with notable figures such as Salesforce’s Marc Benioff expressing doubts that Microsoft would adopt OpenAI’s technology in the long run. This shift led to Microsoft losing its unique position as OpenAI’s cloud provider. However, it’s important to note that Microsoft retains a right of first refusal.

Previously, I had expressed concerns about Microsoft not fully meeting OpenAI’s requirements for cloud computing services. Now, if another AI lab were to surpass us in reaching the prestigious milestone of Artificial General Intelligence (AGI), it would seem like they’re getting the credit that might have potentially been ours, had Microsoft provided a more robust support system.

Lately, there have been reports suggesting that Microsoft backed out from two large data center agreements due to unwillingness to offer extra training assistance for ChatGPT. Contrarily, OpenAI’s CEO Sam Altman seems to dispute these claims, hinting that the company is no longer facing limitations in computational resources.

OpenAI’s value in the market has dramatically increased to an astonishing $300 billion following its successful $40 billion fundraising round led by SoftBank. Nevertheless, the creator of ChatGPT is currently facing significant investor pressure to transform into a profit-making company. If it fails to achieve this goal before the end of the year, it may face a loss of further investments, along with potential external meddling and unwelcome takeovers.

It appears that some sources indicate that Microsoft might be delaying OpenAI’s transition into profitable operations, as they have not yet approved the proposal, given their significant investment of $14 billion in the company and the desire to safeguard their own interests.

Microsoft refuted these claims and suggested they might choose to continue their partnership until 2030, even if high-stakes negotiations were to end. On the contrary, OpenAI is rumored to be considering an early declaration of Artificial General Intelligence (AGI) to free themselves from Microsoft, aiming to reduce Microsoft’s control over its intellectual property and technology.

The tech titan is significantly advancing in the field of artificial intelligence, particularly since Microsoft AI’s CEO, Mustafa Suleyman, disclosed their endeavor to create self-developed models that aren’t on the cutting edge but will follow OpenAI’s advancements by about 3 to 6 months.

1. The leader went on to reveal that the goal of the company is to come in a strong second place. Additionally, it’s important to mention that this tech titan has been trialing third-party AI systems within its Copilot platform.

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2. The executive disclosed that our strategy aims for us to be a close runner-up. It’s also significant to point out that the tech powerhouse is experimenting with third-party AI models within its Copilot program.

Microsoft wants to break free from its over dependence on OpenAI

It appears that Microsoft is making a move towards independence in the AI field, possibly aiming to lessen its dependence on OpenAI and its technology. According to Business Insider’s Ashley Stewart, Microsoft intends to invest substantially in creating and developing their own AI chip cluster to achieve self-reliance in AI.

It’s important for us to possess the ability to create top-tier cutting-edge models within our own team, regardless of their size. However, we must also remain practical and opt for using existing models when they are necessary for a given situation.

Microsoft AI CEO, Mustafa Suleyman

At a recent gathering for all employees, Microsoft’s AI CEO, Mustafa Suleyman, emphasized the importance of our large and multifaceted company being capable of operating independently in AI technology if we so decide.

It appears that Microsoft is shifting its focus, aiming to reduce its excessive reliance on OpenAI and exploring fresh avenues. These include the utilization of open-source models, developing their own AI models, and collaborating with various AI developers.

OpenAI and Microsoft sign an MOU to advance their partnership

In more current times, OpenAI and Microsoft have agreed upon a non-legally binding document, known as a Memorandum of Understanding (MOU), marking the next stage of their multi-billion-dollar partnership. This step is part of Microsoft’s efforts to achieve its profit-driven objectives before the year concludes.

OpenAI and Microsoft have agreed to a preliminary agreement (MOU) outlining our future partnership’s details. We are currently negotiating the specifics of a binding contract. Our shared goal is to continue developing top-tier AI tools for everyone’s benefit,…[as of September 11, 2025]

Although the announcement did not provide specific details about the contents of the MOU, as both parties are still working out the contractual terms for their new agreement. However, OpenAI has made clear its dedication to ensuring safety with the AI tools they develop, despite allegations that they focus more on showy products such as AGI over prioritizing safety measures.

Additionally, they emphasized that their company was established as a charitable organization, and remains steadfast in adhering to its original purpose. The charitable entity will maintain authority over the company’s strategic decisions and daily functions.

According to the non-binding Memorandum of Understanding (MOU) between OpenAI and Microsoft, the nonprofit’s continuing control is now coupled with ownership shares in the Public Benefit Corporation (PBC).”

This version maintains the original structure while making it more readable by using simpler language and avoiding jargon.

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2025-09-12 14:45