OpenAI moving away from MSFT data centers, cozying up to Oracle: The Information

Investing.com -- According to a report from The Information on Tuesday, OpenAI is reportedly shifting its relationship with Microsoft (NASDAQ:MSFT ), moving toward a more independent approach to data centers and cloud services.

After raising $6.6 billion from various financial firms, OpenAI executives are said to have informed employees that the organization will take on a larger role in securing data centers and AI chips instead of solely depending on Microsoft, said The Information.

The publication said the decision comes after OpenAI's Chief Financial Officer, Sarah Friar, expressed concerns to shareholders that Microsoft has not supplied enough computing power quickly enough, leading to a search for alternative data center solutions.

One notable move is said to be OpenAI’s recent arrangement with Oracle (NYSE:ORCL ) to rent servers at a new data center in Texas, which has been described as one of the largest in the world.

According to The Information, this deal was made with limited input from Microsoft, despite its previous agreement to be OpenAI’s exclusive cloud provider.

OpenAI's intention to reduce its reliance on Microsoft data centers is reportedly driven by the need to stay competitive against rivals like Elon Musk’s xAI.

According to The Information, the company started discussions with Oracle to lease the entire Abilene data center site, potentially housing several hundred thousand Nvidia (NASDAQ:NVDA ) AI chips.

They explained that this could help OpenAI manage costs and expand its capabilities independently.

While both companies have previously discussed ambitious projects, such as a massive supercomputing server cluster, disagreements over design and timelines have surfaced, creating uncertainty about their collaboration on future expansions.

Despite these shifts, OpenAI maintains that its strategic relationship with Microsoft remains unchanged, highlighting the ongoing complexities of the partnership.

Source: Investing.com