Sam Altman touts OpenAI-Microsoft alliance, says next phase will be 'better than anyone is ready for'

OpenAI CEO Sam Altman suggested on Tuesday that the relationship between his company and Microsoft is going strong.

Altman posted a picture with Microsoft CEO Satya Nadella on social media site X, and wrote that the "next phase" of their partnership is "gonna be much better than anyone is ready for!!" Nadella responded to the post, saying he is "looking forward to all that's ahead!"

The alliance between the companies has been riddled with tension of late, and Microsoft earlier this month lost its status as OpenAI's exclusive cloud provider. That announcement came as President Donald Trump unveiled his Stargate Project, a joint venture between OpenAI, Oracle and SoftBank that did not include Microsoft, OpenAI's top investor.

In a blog post last week, Microsoft said it remains in solid standing with OpenAI and will maintain a "right of first refusal" before the artificial intelligence startup checks with other parties.

Complications in the partnership arose in late 2023. Nadella reportedly was not briefed before OpenAI's board pushed out Altman in November of that year. After Altman was quickly reinstated, OpenAI gave Microsoft a nonvoting board seat. Microsoft later relinquished that position.

The two companies have also become more competitive as Microsoft uses its homegrown generative AI technology across more of its products. In its annual report last year, Microsoft identified OpenAI as a competitor alongside some longstanding megacap names such as Apple and Meta Platforms.

On Tuesday, OpenAI also announced its ChatGPT Gov product created specifically for the U.S government.

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