Microsoft CEO Says OpenAI Alliance Changing But Remains Strong
(Bloomberg) — Microsoft Corp. (MSFT) Chief Executive Officer Satya Nadella said his company's crucial partnership with OpenAI (OPAI.PVT) is changing, but remains strong.
ICE Moves to DNA-Test Families Targeted for Deportation with New Contract
The Global Struggle to Build Safer Cars
NYC Residents Want Safer Streets, Cheaper Housing, Survey Says
The Buffalo Architect Fighting for Women in Design
'Any company that has gone from being a research lab to one of the most successful product companies of this age — obviously things have to change for them and for us and in the context of the partnership,' Nadella said in an interview on the The Circuit with Emily Chang.
The world's largest software maker is seen as a leader in commercializing AI due to its relationship with — and $13.75 billion investment in — the ChatGPT maker. Still, there have been signs of friction between the companies as each launches competing products and seeks out additional partners.
Nadella noted that OpenAI is Microsoft's largest infrastructure customer and said his company is 'thrilled' to have access to the AI powerhouse's technology. 'Having that multifaceted partnership is what we are really focused on,' he said. 'Why would any one of us want to go upset that?'
The current contract continues through 2030, but a revision earlier this year allows OpenAI to rent computing power from other providers to train AI models. 'I hope that for decades to come, Microsoft and OpenAI will be partnered in variety of different ways,' Nadella said. 'Will they have other partners? Absolutely. Will we have other partners? Absolutely.'
In a previous episode of The Circuit, OpenAI CEO Sam Altman said, 'We do get a lot of great stuff from Microsoft, but I think this is more than any one company can deliver.' To secure more computing for its power-hungry AI models, OpenAI has joined forces with Oracle Corp., SoftBank Group Corp. and others on an AI infrastructure effort called Stargate.
Still, 'Microsoft will do a lot of compute for us, a lot, a lot,' Altman said. 'We're very happy about that.'
Microsoft, which is celebrating its 50th anniversary this year, has been weaving AI tools into its suite of business applications — an effort designed to boost the company's share of the global market for cloud services.
Nadella also is keen to use AI to reboot Microsoft's consumer business, which has long struggled against its peers. To accelerate the process, he recruited DeepMind co-founder Mustafa Suleyman last year to create an AI-focused consumer franchise. Suleyman has pledged to create emotionally intelligent assistants that can be tailored to users' individual needs.
'The number-one priority for us is that we have to produce beautiful, elegant consumer products that regular young people love,' Suleyman said an interview. 'And that is not the way that people currently think of Microsoft products today.'
Microsoft's consumer assistant, dubbed Copilot, has gained some traction but is up against steep competition, most notably from OpenAI. Last month, ChatGPT was downloaded 105 million times between Apple and Android mobile phones, roughly 20 times the number of consumer Copilot downloads, according to research firm Sensor Tower.
Nadella points out that because Microsoft provides much of OpenAI's computing, his company makes money every time ChatGPT is used. 'Every day that ChatGPT succeeds is a fantastic day for Microsoft,' he said.
This episode of The Circuit With Emily Chang premiers at 8 a.m. in New York on the Bloomberg app and Bloomberg.com. It appears at 6 p.m. on Bloomberg Television. Check out The Circuit podcast for extended conversations.
—With assistance from Lauren Ellis and Matt Day.
Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again
YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom
Millions of Americans Are Obsessed With This Japanese Barbecue Sauce
Is Elon Musk's Political Capital Spent?
Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To
©2025 Bloomberg L.P.
By subscribing, you are agreeing to Yahoo's
Terms
and
Privacy Policy
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
35 minutes ago
- New York Times
U.S. Steel and Nippon Steel Say Their ‘Partnership' Is Sealed
U.S. Steel and Nippon Steel announced on Friday that they had entered into an agreement with the U.S. government to seal the terms of a 'partnership' between the companies, more than a year after the Japanese steel maker first tried to buy its U.S. competitor. Former President Joseph R. Biden Jr., under pressure from the United Steelworkers union, blocked the deal on the basis that it was a threat to national security. President Trump, who also initially opposed the deal, reversed himself and decided to look for a way to revive it. The companies referred to the deal as a partnership, echoing language that Mr. Trump used in describing the transaction he blessed three weeks ago. But U.S. Steel has not indicated to shareholders that it has altered the $14.9 billion sale to Nippon that they approved in April last year. 'We thank President Trump and his administration for their bold leadership and strong support for our historic partnership,' the companies said in a statement. 'This partnership will bring a massive investment that will support our communities and families for generations to come.' The companies said they had entered into agreement with the U.S. government to alleviate any security concerns posed by the deal, known as a national security agreement, which calls for roughly $11 billion in new investments by 2028. The deal will also give the U.S. government a 'golden share' in the company, a rarely used practice through which the government takes a stake in company. In the United States, the government has typically taken a stake only in companies that are ailing or in particular need of government attention, like General Motors during the 2008 financial crisis. This is a developing story. Check back for updates.
Bloomberg
an hour ago
- Bloomberg
Middle East Tensions Escalate, Oil Prices Jump
Centerview Partners Senior Counselor Richard Haass says that while geopolitical tensions cause fluctuations in prices, there would have to be ongoing conflict to see a sustained upward move in oil prices. (Source: Bloomberg)
Bloomberg
an hour ago
- Bloomberg
Ramp Hits $16 Billion Valuation in New Funding Round
Financial technology startup Ramp is now valued at $16 billion following a $200 million funding around, according to a person familiar with the matter. Founders Fund, the VC firm backed by billionaire Peter Thiel, led the financing, the person said.
