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Microsoft Relaxes Data Center Grip on OpenAI Amid $500 Bln Joint Venture 

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, Jan. 25, 2021. (Reuters) 
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, Jan. 25, 2021. (Reuters) 
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Microsoft Relaxes Data Center Grip on OpenAI Amid $500 Bln Joint Venture 

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, Jan. 25, 2021. (Reuters) 
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, Jan. 25, 2021. (Reuters) 

Microsoft on Tuesday said it has changed some key terms of a deal with OpenAI after the ChatGPT creator announced a joint venture with Oracle and Japan's SoftBank Group to build up to $500 billion of new AI data centers in the United States.

President Donald Trump gathered the leaders of the "Stargate" effort at the White House on Tuesday to announce the deal, saying it was intended to help keep the United States ahead of China and other rivals in the global AI race, using chips from Nvidia.

Since 2019, Microsoft has had arrangements with OpenAI that gave the Redmond, Washington-based company the exclusive right to build new computing infrastructure for OpenAI. Microsoft, in a blog post, said it has "approved OpenAI's ability to build additional capacity, primarily for research and training of models."

That opened the door for OpenAI to work with Oracle.

A person familiar with the deal said that Stargate is a joint venture structured as a new entity in which OpenAI has an equity stake, governance rights and operational control. It will have a separate board appointed by the founding members and its own CEO, this person said.

Microsoft, along with Nvidia and Arm, will be a "technology partner" in the new venture, but is not listed as an equity funder. SoftBank CEO Masayoshi Son is will be the entity's board chairman, according to a statement from OpenAI posted on social media site X.

But Microsoft said that it still retains the exclusive right to offer OpenAI's API - technology shorthand for application programming interface, which is the main way that software developers and business customers buy OpenAI's services. That means Oracle will not be able to host OpenAI's primary source of revenue.

Oracle did not immediately respond to a request for comment on Microsoft's statements.

Microsoft said it has "revenue sharing agreements that flow both ways" with OpenAI.

"The key elements of our partnership remain in place for the duration of our contract through 2030, with our access to OpenAI’s IP, our revenue sharing arrangements and our exclusivity on OpenAI’s APIs all continuing forward," Microsoft said.

Microsoft also said "OpenAI recently made a new, large Azure commitment that will continue to support all OpenAI products as well as training," referring to Microsoft's Azure cloud computing service.

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Britain to Introduce Digital Driving Licences this Year

A gaggle of geese stop traffic on The Mall as they cross the road in front of Buckingham Palace, in London, Britain October 10, 2022. REUTERS/Hannah McKay/File Photo
A gaggle of geese stop traffic on The Mall as they cross the road in front of Buckingham Palace, in London, Britain October 10, 2022. REUTERS/Hannah McKay/File Photo
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Britain to Introduce Digital Driving Licences this Year

A gaggle of geese stop traffic on The Mall as they cross the road in front of Buckingham Palace, in London, Britain October 10, 2022. REUTERS/Hannah McKay/File Photo
A gaggle of geese stop traffic on The Mall as they cross the road in front of Buckingham Palace, in London, Britain October 10, 2022. REUTERS/Hannah McKay/File Photo

Britain will introduce digital driving licences later this year in a push to use data to transform public services, the government said on Tuesday.

The licence will be held in a new GOV.UK digital wallet on smartphones and it will enable users to easily prove their age when buying age-restricted items as well as proving a right to drive.

Security features built into smartphones like facial recognition will ensure digital documents are secure even if a device is lost, the government said.

Other credentials issued by the government such as veteran cards and criminal record checks will be added by the end of 2027, it said, while physical documents would also remain available, according to Reuters.

The wallet will come alongside a government app, due this summer, that will make using services like applying for childcare or reporting a lost passport easier.

Science Secretary Peter Kyle said the GOV.UK wallet would mean that every letter or identity document received from the government could be issued virtually.

"For people who choose to use GOV.UK Wallet, they will find it easier to prove they're entitled to benefits or check their age when buying alcohol or DIY equipment, with more security and trust than ever before," he said.

"Crucially, it also opens huge opportunities to make interacting with public services much easier by putting people in control of their own data."

A government review published on Tuesday said the full digitisation of public services could result in more than 45 billion pounds ($55 billion) a year of savings and productivity benefits.

Digital driving licences already exist in Australia, Denmark, Iceland and in some US states.