The “Stargate” initiative between OpenAI and SoftBank generated worldwide excitement following their unveiling of a $500 billion venture, with partners Oracle and MGX. During their announcement, the creators of ChatGPT revealed that approximately $100 billion had been invested to begin building data centers throughout the U.S., aimed at fostering cutting-edge AI developments.
Wealthy entrepreneur and Tesla’s leader, Elon Musk, swiftly expressed his thoughts on X (previously known as Twitter), in response to OpenAI’s Stargate unveiling.
The truth is, they don’t possess the required funds. From a reliable source, I know that SoftBank has only managed to secure less than $10 billion.
Musk’s comments on the Stargate initiative have apparently caused uncertainty among significant figures in the AI community, such as Salesforce CEO Marc Benioff, who offered intriguing perspectives and forecasts regarding Microsoft and OpenAI’s billion-dollar collaboration. To put it into perspective, the Stargate project led to changes in various aspects of their original deal, causing Microsoft to lose its exclusive cloud provider position.
Microsoft, the Redmond tech titan, holds the “preemptive purchase right,” which means they are the preferred choice to accommodate OpenAI tasks within their cloud network. Yet, if Microsoft fails to fulfill the conditions, OpenAI is allowed to seek alternatives from rival service providers. The updated contract also preserves four significant aspects from the original deal, such as access to OpenAI’s intellectual property for AI solutions, exclusive use of OpenAI’s API on Azure, and more.
From my perspective, I’ve learned that Benioff hinted at Microsoft opting against incorporating OpenAI in their future plans, as they are currently developing their own AI for cutting-edge models. Moreover, he suggested a potential tension between Microsoft’s AI CEO Mustafa Suleyman and OpenAI’s CEO Sam Altman.
Nadella says Microsoft will stay true to its AI efforts
Over the last several months, it has been suggested that the partnership between Microsoft and OpenAI, often referred to as one of the top tech friendships globally, may be facing some strains. These reports stemmed from complaints by OpenAI about their original agreement with Microsoft. It appears that the ChatGPT creator is spending a significant amount on computing resources from Microsoft, yet these resources seem insufficient for driving its cutting-edge AI developments, such as Artificial General Intelligence (AGI).
Microsoft, on the other hand, has expressed dissatisfaction with the collaboration, pointing out GPT-4’s poor performance as a concern. The tech giant argues that the model is overpriced and lacks the speed required to satisfy enterprise consumers, leading Microsoft to explore more efficient solutions from external providers.
The recently unveiled $500 billion Stargate venture by OpenAI has ended Microsoft’s sole position as its cloud provider. While some significant investors have expressed concerns over Microsoft’s partnership with OpenAI, CEO Satya Nadella appears unfazed by the potential shift in their tech friendship.
In a conversation with CNBC, the executive revealed that Microsoft allocates around $80 billion in capital each year towards OpenAI, and they intend to continue this investment trend this year. Yet, he didn’t seem overly concerned about the specifics or exact amounts of other major investors’ planned contributions for the Stargate project.
Nadella was also questioned regarding his thoughts on Elon Musk stating that OpenAI and related parties didn’t have the funds for the Stargate project, despite assertions that a $100 billion reserve had been established to initiate construction of data centers. In response, Nadella, as Microsoft CEO, appears to have challenged Musk’s statements.
To make it clear, I assure you that our $80 billion investment is well-spent. We plan to use this sum to expand Azure globally. With Microsoft’s backing, OpenAI models will be available worldwide, delivering these models and many more to our customers.
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2025-01-24 16:11