Microsoft considering legal action over Amazon and OAI deal

Microsoft is reportedly considering legal action against Amazon and OpenAI, with sources telling the Financial Times that it will sue if a new $50B cloud deal between the two companies violates its exclusive contract to host the startup's models on Azure.

The dispute is over Frontier, OpenAI's new enterprise agent platform and also the anchor of a broader deal committing $138B in cloud spending to AWS. Microsoft ended its exclusive hosting agreement with OpenAI in October, but still requires developers to access OpenAI models via Azure

The Finanical Times source said “We know our contract… We will sue them if they breach it”, with another source adding “the last thing OAI needs is another court case”.

OAI reportedly signed a new deal with AWS last week, which opened the door for the company’s deployment with the Pentagon.