Google wants the FTC to break Microsoft's cloud deal with OpenAI.
Buying OpenAI's tech through Microsoft may see extra charges.
OpenAI wants to scrap an AGI clause to extend the partnership.
In a surprising turn of events, Google has reportedly asked the US government to break Microsoft's exclusive agreement to host OpenAI's technology on its cloud servers. For context, Microsoft and OpenAI are in a mutually beneficial partnership. The former gets access to the ChatGPT maker's advanced AI models and intellectual property (IP). In contrast, the latter gets computing power and funding for its sophisticated AI advances.
But as it now seems, Google wants the US government to intervene, potentially changing the terms of the agreement between Microsoft and OpenAI by breaking the ChatGPT maker's exclusive deal with Microsoft for its vast cloud computing resources. According to The Information, Google expressed concerns when the US Federal Trade Commission (FTC) asked about Microsoft's business practices as part of an ongoing investigation into its operations.
If the FTC greenlights Google's request, Microsoft's cloud computing business could face critical challenges. For instance, Google and Amazon also provide cloud computing services, meaning they could host OpenAI's AI models. As such, OpenAI's user base won't need to leverage Microsoft's servers to access the ChatGPT maker's tech stack.
The report further detailed that consumers buying OpenAI's tech through Microsoft may face extra charges, especially if they aren't already using Microsoft's cloud computing services in their operations.
OpenAI CFO Sarah Friar previously placed Microsoft on the spot by indicating that the tech giant isn't moving fast enough to meet the ChatGPT maker's cloud computing needs. The AI firm expressed its need for faster server supplies to support its ever-evolving advances in the landscape.
As you may know, OpenAI was on the verge of bankruptcy with projections of a $5 billion loss in the next 12 months. However, the ChatGPT maker's lifeline was extended through another round of funding from investors, including Microsoft, NVIDIA, and other key stakeholders. It raised $6.6 billion, pushing its market cap to over $157 billion.
The ChatGPT maker highlighted its detailed plans to secure more data centers and AI chips for its advanced ventures with the funds, potentially emancipating itself from an overreliance on Microsoft for its cloud computing needs.
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Microsoft's partnership with OpenAI gets complicated by the day
ChatGPT and Microsoft Logo
ChatGPT and Microsoft Logo(Image credit: Daniel Rubino)
Over the weekend, a separate report indicated OpenAI is in discussions to scrap a stringent clause that would void its partnership with Microsoft immediately after it hits the coveted AGI moment. The report further detailed that the strategic move will help OpenAI secure future funding and investment for its AI advances from Microsoft beyond AGI.
A technical employee at OpenAI indicated the company might have already achieved the coveted benchmark after shipping the OpenAI o1 reasoning model from preview to general availability. Major tech players in the AI landscape have shared different accounts and timeframes, highlighting when AGI could be achieved.
OpenAI CEO Sam Altman says AGI can be achieved in 2025 with current hardware. He added that the benchmark would whoosh by with "surprisingly little" societal impact. However, Microsoft AI CEO Mustafa Suleyman says AGI could be achieved within 7 years. The executive further claimed it wouldn't be possible to hit the threshold with the current hardware, speculating a shift within the next two to five generations.
This news comes amid reports top AI labs, including Google, Anthropic, and OpenAI are struggling to develop advanced AI models due to a lack of high-quality training content. However, the claims have been disputed by Sam Altman, who indicated "There's no wall." Former Google CEO Eric Schmidt shared the same sentiments, highlighting that there's no evidence scaling law has begun to stop the development of AI.
Elsewhere, Microsoft CEO Satya Nadella's comment about Google's missed opportunity in the AI landscape triggered CEO Sundar Pichai to throw a lethal jab at the Redmond giant's efforts in AI. According to Pichai:
"I would love to do a side-by-side comparison of our models. They're using someone else's models."
To this end, it remains unclear if the FTC will greenlight Google's request to foster fair business practices in cloud computing. It'll be interesting to see how the regulation could impact Microsoft's multi-billion dollar partnership with OpenAI.