OpenAI is all set to expand enterprise reach as it can now sell products on Amazon and Google Cloud.
According to Reuters, Microsoft will lost exclusive access to OpenAI's technology, clearing the way for the ChatGPT creator to sell its products across rival cloud platforms in a sweeping change to one of the artificial intelligence era's most consequential alliances.
The reworked tie-up, announced jointly by the companies on Monday, April 27, retains Microsoft as OpenAI's primary cloud partner with a license to the startup's intellectual property through 2032.
It also paves the way for OpenAI to take its models to Amazon.com's cloud unit, without any technical workarounds.
In a post on LinkedIn, Amazon CEO Andy Jassy said that OpenAI's models will be available directly to developers on Amazon Web Services "in the coming weeks" and that the two firms would share more details at an event in San Francisco on Tuesday.
"With this, builders will have even more choice to pick the right model for the right job," Jassy wrote.
But the software giant will no longer share revenue for the OpenAI products it sells on its cloud.
The change is meant to simplify a complex relationship between OpenAI and its one of its biggest and earliest backers.
Microsoft's early bet on OpenAI allowed the company to roll out AI across its products and powered sales growth at its Azure cloud-computing business, turning the company into one of one the biggest players in the high-stakes race for the technology.
But tensions have been rising between the companies as OpenAI strikes cloud deals with rival providers to secure more computing power and build out an enterprise business that can compete better with Anthropic ahead of a potential IPO.
The Financial Times reported last month Microsoft was weighing legal action against Amazon and OpenAI over a $50 billion cloud deal that may breach its exclusive cloud tie-up.
