Microsoft is considering legal action against OpenAI and Amazon after the two companies signed an agreement to make AWS the exclusive third-party cloud provider for Frontier, OpenAI’s enterprise platform. The $50 billion deal is seen as a breach of an exclusivity agreement between Microsoft and OpenAI that stipulates that OpenAI’s models must be accessed through Microsoft Azure.
The three companies have yet to issue an official statement denying the Financial Times report. Microsoft sources have only said they are prepared to sue if the contract is breached. But the three companies are believed to be in talks to resolve the issue before the launch of Frontier.
Microsoft made a major investment in OpenAI after Sam Altman was fired as CEO in 2023, before returning after the board of directors was also ousted. As a result of this investment, the Copilot feature uses AI models developed by OpenAI.
