Microsoft (MSFT.US) has softened its stance, allowing OpenAI to utilize other cloud services.

Microsoft (MSFT.US) has altered its long-standing agreement with OpenAI, now permitting the artificial intelligence startup to utilize cloud computing services from a rival. The deal, which will remain in effect until 2030, grants Microsoft first access to computing power when OpenAI seeks it to train and run its AI models, the company stated in a Tuesday announcement. Microsoft had previously been OpenAI's sole cloud provider, but last year it approved a one-time exemption to allow the startup to purchase a portion of its capacity from Oracle (ORCL.US). Microsoft also revealed that OpenAI can now develop its own cloud computing capabilities, primarily intended for research and model training. This change coincides with OpenAI, SoftBank Group, and Oracle's announcement of a $50bn joint venture to establish cloud computing data centers in the US. President Donald Trump unveiled the plan, titled "Stargate", on Tuesday. Microsoft indicated that it will provide technology to the venture but will not contribute any capital. It also disclosed that OpenAI recently made a "new substantial" commitment to continue utilizing Microsoft's Azure cloud service to support its AI products. Moreover, the US Federal Trade Commission (FTC) stated in a report published on Friday that Microsoft's $13bn investment in OpenAI raised concerns that the tech giant could extend its dominance in the cloud computing market to emerging AI markets. The FTC criticized the practice of cloud service giants investing in AI companies to bolster their own businesses. Many investments take the form of credits for cloud services and require AI startups to spend on those platforms, which undoubtedly increases the cost of switching to a different platform for AI startups.