Microsoft and OpenAI distance themselves as Microsoft diversifies its AI model partnerships across cloud platforms

Microsoft and OpenAI have updated their partnership agreement multiple times and are distancing themselves from one another, while both continue to work together.

Microsoft's cloud servers (Foundry) now let customers choose from multiple AI models including ones from OpenAI, Anthropic, and open source. CEO Satya Nadella stated that over 10,000 customers have used more than one model on Foundry, 5,000 have used open-source models, and the number who have used Anthropic and OpenAI models increased 2x quarter-over-quarter.

For long-term investors, being less dependent on OpenAI should position Microsoft better to grow its AI business, as the company's Copilot assistant has already improved many of its products and services including Word and Excel.