Microsoft Corporation (NASDAQ:MSFT) is evaluating potential legal action against Amazon.com (NASDAQ:AMZN) and OpenAI following their reported $50 billion cloud agreement, which could conflict with Microsoft’s existing exclusive partnership with the AI developer, the Financial Times reported on Wednesday.
According to the report, the dispute centers on whether Amazon Web Services can host OpenAI’s upcoming commercial product, Frontier, without breaching the exclusivity arrangement between Microsoft and OpenAI. The Financial Times cited sources familiar with the discussions.
Under the terms of the agreement, access to OpenAI’s artificial intelligence models is required to run through Microsoft’s Azure cloud platform.
Amazon and OpenAI are reportedly exploring ways to structure a system that could bypass the Microsoft contract, a move that has raised concerns within the tech giant.
The companies are still engaged in negotiations aimed at resolving the issue without resorting to legal action ahead of the planned launch of Frontier, the report added.