The software giant was previously the exclusive cloud provider for OpenAI and now retains right of first refusal.

We are thrilled to continue our strategic partnership with OpenAI and to partner on Stargate. Today’s announcement is complementary to what our two companies have been working on together since 2019.

If you've read about the Microsoft-OpenAI relationship over the past few years, you'd know that apart from its financial investments, Microsoft was also the exclusive cloud infra provider to OpenAI. While the former is still there,

The long-standing partnership between Microsoft and OpenAI has evolved in order to “drive the next phase of AI”. Key elements of the 2019 agreement remain in place until 2030, including Microsoft’s right to OpenAI intellectual property for use within its products,

Microsoft will no longer be the exclusive provider of new cloud computing capacity to OpenAI — a new twist in their relationship that clears the way for OpenAI to work with Oracle and others on the $500 billion Stargate AI project announced by the companies Tuesday with President Trump at the White House.

Microsoft’s deal with OpenAI has ‘evolved’ to include a right of first refusal on supplying new capacity.

Microsoft has revised its agreement with OpenAI, allowing the AI company to partner with other cloud service providers (CSPs). However, Microsoft retains the Right of First Refusal (ROFR), giving it a priority to match any competing offers before OpenAI commits to other providers.