Source: The Information
Summary
OpenAI has secured concessions from Microsoft, its largest shareholder, allowing it to sell products on Amazon Web Services (AWS). In return, Microsoft will receive a larger share of revenue from OpenAI’s sales. This agreement marks a significant shift in the partnership between the two companies. According to the report, Microsoft had previously restricted OpenAI from selling products on rival cloud platforms. OpenAI’s products will now be available on AWS, in addition to Microsoft’s Azure.
Our Reading
The announcement sounds ambitious.
OpenAI gets to sell on AWS, because who doesn’t want more options? Microsoft gets a bigger cut, because revenue-sharing is the new innovation. This deal is all about “expanding the pie” – or rather, the revenue stream. It’s a win-win, except for the part where Microsoft was restricting OpenAI in the first place. “Freedom to sell on other platforms” is just a fancy way of saying “we’re not as restrictive as we used to be.”
Author: Evan Null
