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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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Saudi Arabia: CST, SSA Launch SpaceUp Competition to Develop Innovative Space-Based Solutions

The SpaceUp Competition targets global and local entrepreneurs, startups, and SMEs through six challenge tracks
The SpaceUp Competition targets global and local entrepreneurs, startups, and SMEs through six challenge tracks
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Saudi Arabia: CST, SSA Launch SpaceUp Competition to Develop Innovative Space-Based Solutions

The SpaceUp Competition targets global and local entrepreneurs, startups, and SMEs through six challenge tracks
The SpaceUp Competition targets global and local entrepreneurs, startups, and SMEs through six challenge tracks

The Communications, Space and Technology Commission (CST) and the Saudi Space Agency (SSA) have launched the global SpaceUp Competition, in partnership with Neo Space Group (NSG), which aims to promote Space entrepreneurship, support local companies specializing in Space-based solutions, attract global entrepreneurs, startups and Small and Medium Enterprises (SMEs), and encourage the adoption of Space-based solutions by entities operating across various vital sectors.
According to a CST statement issued Monday, the SpaceUp Competition targets global and local entrepreneurs, startups, and SMEs through six challenge tracks to develop Space-based solutions for challenges in vital sectors by linking the supply with the demand.
The competition presents about $28 Million contractual opportunities across all competition tracks, in addition to providing direct access with end-users, localization, and connecting with end-users to implement the proposed solutions.
The statement highlighted that the competition includes six challenge tracks supporting various sectors. The first track, “Monitoring Date Palms Pest and Disease,” sponsored by the Ministry of Environment, Water, and Agriculture and the Weqaa Center, focuses on providing Space-based solutions to monitor palm farms and detect pests. The second, “Improving City Livability by Monitoring Urban Heat Islands,” by the Quality of Life Program, aims at solving the problem of rising temperatures in crowded cities. The third is “Monitoring the Impact of Infrastructure Development” by Riyadh Infrastructure Projects Center to promote infrastructure projects and traffic management.
The fourth and fifth tracks are the “Optimizing Urban Road Assets” track which aims to provide solutions to detect urban road damage and elevate its maintenance, and “Mapping of Urban Trees” which aims to monitor and maintain urban green spaces, both sponsored by the Ministry of Municipalities and Housing. The sixth, “Greening Saudi Arabia,” seeks to monitor tree growth and support sustainability efforts related to the Saudi Green Initiative.
"The SpaceUp Competition extends the efforts of CST and the SSA in enhancing investment opportunities in the Saudi Space sector and stimulating research and innovation," the statement added.