OpenAI’s partnership with Oracle won’t impact Microsoft at all

OpenAI-Microsoft is going to be a thing for a long time.

3 min. read

Published onJune 12, 2024

published onJune 12, 2024

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OpenAI has become a new topic in the busy cloud computing and artificial intelligence. A notable player in the AI field, OpenAI recently made an arrangement with Oraclethat attracted attention.

This move has caused some people to question OpenAI’s ongoing association with Microsoft. However, OpenAI has given confidence that Microsoft will continue as its main cloud platform even with the fresh alliance it formed with Oracle.

In a post on X (formerly known as Twitter),OpenAI said:

We want to clarify some inadvertent confusion. Our strategic cloud relationship with Microsoft is unchanged. The partnership with OCI enables OpenAI to use the Azure AI platform on OCI infrastructure for inference and other needs. All pre-training of our frontier models continues to happen on supercomputers built in partnership with Microsoft.

We want to clarify some inadvertent confusion.Our strategic cloud relationship with Microsoft is unchanged.The partnership with OCI enables OpenAI to use the Azure AI platform on OCI infrastructure for inference and other needs.All pre-training of our frontier models…

The nature of this partnership is interesting. OpenAI, a leading artificial intelligence and machine learning company, wants to enhance the Azure AI platform by utilizing Oracle Cloud Infrastructure (OCI), mainly for tasks such as inference.

Inference can be understood as using trained AI models to make predictions or decisions. This tactic is clever because it lets OpenAI use OCI’s infrastructure for particular requirements yet still depend on Microsoft’s supercomputers to train its most cutting-edge models, called “frontier models.”

This is a considerable development as it highlights the collaborative aspect of the cloud computing industry. OpenAI’s strategy of using abilities from both Microsoft and Oracle shows a pattern of companies not concentrating their efforts in just one place.

Instead, they are making their operations more efficient by utilizing the strengths of each cloud provider.

Larry Ellison, Oracle’s Chairman and CTO, also spoke up about OCI’s abilities. He stressed how it attracts those leading in AI development because of its quickness and cost efficiency. Sam Altman, OpenAI’s CEO, shared the same excitement for this partnership that would help his company grow to a larger extent with the use of OCI.

This partnership is not only about OpenAI; it shows a bigger change in the tech field. Companies increasingly seek adaptable and strong answers to manage the rising need for AI services.

When ChatGPT from OpenAI is used by over 100 million people monthly, infrastructure that can handle large-scale requests becomes necessary.

The deal between OpenAI and Oracle, as they continue their main relationship with Microsoft, shows a tactical step to improve AI power. It also represents how cloud computing is changing – cooperation and adaptability matter most for success in the competition to create and use advanced AI tech.

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Microsoft will raise the price of its 365 Suite to include AI capabilities

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OpenAI’s partnership with Oracle won’t impact Microsoft at all