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Microsoft Fears OpenAI Shift to Amazon Amid Azure Backlash

The Verge · Friday, May 8, 2026 · Category: Industry
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Microsoft Fears OpenAI Shift to Amazon Amid Azure Backlash

A recent court filing in the high-profile Musk v. Altman trial has shed light on the inner workings of Microsoft's partnership with OpenAI. According to the documents, Microsoft executives were concerned that OpenAI might abandon their deal and partner with Amazon instead, potentially undermining their Azure cloud computing platform. The tension stems from the fact that OpenAI was in talks with both Microsoft and Amazon while exploring the development of AI-powered gaming bots. Microsoft CEO Satya Nadella and OpenAI CEO Sam Altman were in the process of finalizing a partnership, with Microsoft set to invest $10 billion in the company. However, Microsoft's executives were worried that OpenAI might opt for a deal with Amazon, which could have given the e-commerce giant access to OpenAI's cutting-edge AI technology. The concerns were reportedly voiced by Microsoft's top executives, who feared that OpenAI's partnership with Amazon could lead to "shit-talking" of Azure, Microsoft's cloud computing platform. This suggests that Microsoft was particularly concerned about the potential loss of business and reputation that could result from OpenAI's partnership with a competitor. The court filing provides a rare glimpse into the strategic considerations and negotiations that took place between Microsoft and OpenAI. The partnership ultimately went ahead, with Microsoft investing $10 billion in OpenAI and the two companies working together on various AI projects.

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