The Stargate Project will see an initial investment of $100 billion, potentially reaching up to $500 billion over the next four years. JPMorgan notes that Microsoft is strategically sharing the financial burden with Softbank and Oracle, allowing these companies to gain involvement while Microsoft maintains access to OpenAI's intellectual property until 2030. This arrangement is seen as beneficial for Microsoft, as it continues to hold significant influence and opportunities with OpenAI.
Key takeaways:
- Microsoft loses its exclusive provider status for OpenAI's computing capacity but retains the right of first refusal for additional capacity.
- The change in the Microsoft-OpenAI relationship is part of the Stargate Project, a joint venture with Oracle, Softbank, and others to invest in AI infrastructure.
- Executives from the involved companies have committed to invest between $100 billion and $500 billion over the next four years in the Stargate Project.
- JPMorgan notes that Microsoft maintains access to OpenAI's intellectual property until 2030 and sees the arrangement as beneficial for Microsoft.