Microsoft restates dedication to OpenAI amid analyst be aware about datacentre enlargement rollbacks
Microsoft has pushed again towards claims its determination to cancel and defer no less than 2GW of datacentre initiatives within the US and Europe is indicative of its “fraying relationship” with OpenAI.
US analyst TD Cowen revealed a analysis be aware on 26 March 2025 that instructed the general public cloud big had cancelled and deferred datacentre lease agreements within the US and Europe that will have elevated its compute capability by no less than 2GW.
The rationale for the rollback on its plans was, in keeping with TD Cowen, because of Microsoft’s determination to not assist OpenAI’s incremental coaching workloads.
TD Cowen had beforehand mentioned the 2 firms had been concerned in a “fraying relationship”, after Microsoft confirmed in January 2025 that the exclusivity cloud internet hosting deal between the 2 corporations had been rejigged.
A Microsoft weblog publish, dated 21 January 2025, confirmed OpenAI had made a “massive Azure dedication” that included “modifications to the exclusivity on new capability, shifting to a mannequin the place Microsoft has a proper of first refusal”.
This implies Microsoft will get first refusal on whether or not or not it desires to host OpenAI workloads, however OpenAI additionally reserves the appropriate to construct its personal capability with different companions if Microsoft can not meet its wants.
Microsoft has now issued an announcement to Laptop Weekly, pushing again on TD Cowen’s tackle the scenario, whereas additionally restating the power of the working relationship between the corporate and OpenAI.
In reference to its determination to reduce its datacentre enlargement plans, Microsoft mentioned it’s “well-positioned” to fulfill the present and growing buyer demand it’s seeing for its companies due to the “important investments” it’s made in its infrastructure up to now.
“Final 12 months alone, we added extra capability than any prior 12 months in historical past,” mentioned a Microsoft spokesperson. “Whereas we could strategically tempo or alter our infrastructure in some areas, we’ll proceed to develop strongly in all areas.
“This permits us to speculate and allocate sources to progress areas for our future. Our plans to spend over $80bn on infrastructure this monetary 12 months stay on observe as we proceed to develop at a document tempo to fulfill buyer demand.”
Microsoft has been a associate in OpenAI since 2019, with the 2 corporations beforehand stating that they had been working in the direction of a shared aim to “responsibly advance synthetic intelligence analysis” whereas democratising the know-how and making it accessible to all.
Across the identical time that Microsoft launched particulars of its reworked cloud internet hosting association with OpenAI, the latter launched particulars of its $500bn effort to increase the infrastructure underpinning its companies by way of the launch of the Stargate Mission.
Softbank, Oracle, MGX and OpenAI are the fairness funders for the initiative, whereas Microsoft is listed as a know-how associate.
In reference to its ongoing partnership with OpenAI, the Microsoft spokesperson mentioned: “OpenAI continues to be an amazing associate. We stay dedicated to pushing the frontier of AI ahead, driving innovation, and making cutting-edge fashions accessible to our clients and companions.”
