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Microsoft weighs legal action over $50bn Amazon-OpenAI cloud deal

Rift deepens as start-up tests limits of Microsoft’s exclusive rights to host its models

Microsoft is weighing legal action against Amazon and OpenAI over a $50bn deal that could breach its exclusive cloud partnership with the ChatGPT maker, setting up a clash between the Big Tech rivals.

The dispute centres on whether Amazon Web Services can offer OpenAI’s new commercial product, known as Frontier, without violating a longstanding agreement that requires all access to the start-up’s models to be routed through Microsoft’s Azure cloud platform.

The arrangement is highly lucrative for Microsoft, with OpenAI’s products helping drive Azure revenues to record highs.

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