Microsoft and OpenAI continue partnership to “drive the next phase of AI”

The new agreement moves to a “right of first refusal” model and will see the two collaborate on the Stargate project to build new AI infrastructure across the USA

Laura Hyde | 22 January 2025

The long-standing partnership between Microsoft and OpenAI has evolved in order to “drive the next phase of AI”.

Key elements of the 2019 agreement remain in place until 2030, including Microsoft’s right to OpenAI intellectual property for use within its products, such as Copilot; OpenAI’s access to Azure; and revenue sharing arrangements. However, the new agreement gives Microsoft the “right of first refusal” to host new OpenAI work on the cloud, as well as an Azure commitment to continue to “support all OpenAI products as well as training”, according to a blog post on the Microsoft website.

The partnership between Microsoft and OpenAI will also see the two partnering on Stargate, a project to build new AI infrastructure in the USA over the next four years, an investment worth $500 billion.

The project, which will invest $100 billion “immediately”, is being funded by lead partners OpenAI and SoftBank, as well as Oracle and MGX, and will use chips designed by Nvidia. Development of the project is underway in Texas with further potential sites across the country still under evaluation. The project is expected to create 100,000 new jobs.