Microsoft ends exclusive payments to openai, eyeing broader ai partnerships

Microsoft's partnership with OpenAI, the AI powerhouse behind ChatGPT, is shifting gears. The tech giant will no longer make exclusive payments to the startup, marking a key change in their relationship. This move comes as AI innovation accelerates, with multiple cloud providers vying for a piece of the action.

Openai seeks wider horizons

As part of its pivot to becoming a for-profit entity last year, Microsoft acquired a 27% stake in OpenAI. However, the two companies' differing strategies and intense competition have strained their alliance. OpenAI's quest for broader reach now seems to be taking precedence.

Microsoft's decision to end exclusive payments could be a smart play, allowing it to engage with other AI players without being tied to a single partner. The move may also reduce the financial burden OpenAI's development incurs on Microsoft.

Yet, the timing of this announcement could hardly be worse for Microsoft, with shares plummeting 3% ahead of Monday's market open. Meanwhile, Amazon, a potential OpenAI beneficiary, saw its stock rise around 1%.