OpenAI is reportedly shifting its long-term cloud computing strategy, exploring alternative infrastructure providers beyond Microsoft Azure. According to The Information, the ChatGPT maker is considering Stargate—a massive AI cloud project in the U.S.—as a key component of its future operations.
Stargate: A $500 Billion AI Cloud Project
Stargate, backed by investors like SoftBank, aims to establish a competitive AI cloud infrastructure capable of challenging Microsoft Azure, Amazon AWS, and Google Cloud. OpenAI’s potential move toward Stargate could lower costs and grant the company greater control over infrastructure and pricing, reducing its dependency on Microsoft.
Currently, Microsoft remains OpenAI’s largest cloud provider and investor. However, OpenAI plans to transition gradually, with projections indicating that by 2030, three-quarters of its computing power will come from Stargate. Spending is set to rise significantly, from $5 billion in 2024 to an estimated $20 billion in 2027.
Microsoft’s Changing Role
Last month, Microsoft adjusted its partnership terms with OpenAI, moving away from an exclusive cloud provider role. The new agreement gives Microsoft the “right of first refusal” (ROFR), meaning OpenAI can seek other providers like Oracle if Microsoft cannot meet its needs.
Diversifying cloud partnerships could help OpenAI address regulatory concerns over its close ties to Microsoft while increasing operational flexibility. As OpenAI moves toward a for-profit model, its $157 billion valuation and $17.9 billion in funding will likely support this strategic transition
