Microsoft is responding to recent claims about its datacentre projects. A report from analyst TD Cowen suggested that Microsoft postponed or canceled plans for at least 2GW of datacentre expansions in the US and Europe. This move, they said, indicates a “fraying relationship” with OpenAI.
Cowen pointed out that the cancellations are tied to Microsoft’s decision to step back from supporting OpenAI’s incremental training workloads. Earlier this year, Microsoft acknowledged changes in their exclusive cloud hosting agreement with OpenAI. They confirmed that OpenAI made a large commitment to Azure, but now there’s a shift. Microsoft has the first option to host OpenAI workloads, but OpenAI can also seek other partners if needed.
In light of these claims, Microsoft issued a statement asserting that their relationship with OpenAI is strong. They clarified their datacentre scaling back. According to them, they are in a solid position to meet current and future customer demands thanks to major investments in infrastructure. A spokesperson noted, “Last year alone, we added more capacity than in any prior year.” Microsoft emphasized that while they might strategically adjust certain areas, they plan significant growth across all regions.
Microsoft is committed to investing over $80 billion in infrastructure this financial year, maintaining their aim to meet record customer demand. Since 2019, Microsoft and OpenAI have collaborated to responsibly advance AI research and democratize access to this technology.
Around the same time that Microsoft revealed its modified cloud hosting terms, OpenAI announced its ambitious $500 billion Stargate Project, aimed at enhancing its service infrastructure. This initiative is backed by investors like Softbank, Oracle, and MGX, with Microsoft involved as a technology partner.
In closing, Microsoft reiterated its commitment to OpenAI, maintaining they are great partners who share a vision for pushing AI advancements and making innovative models more accessible.