Microsoft Reaffirms Commitment to OpenAI Following Analyst Insights on Data Center Expansion Adjustments
Microsoft Responds to Claims About Data Center Projects and OpenAI Relationship
Microsoft recently addressed concerns surrounding its decision to cancel or postpone various data center projects in the U.S. and Europe. These claims have been linked to allegations of a declining partnership with OpenAI, but Microsoft aims to clarify the situation.
Data Center Projects Delayed
A report from the U.S. analyst firm TD Cowen, published on March 26, 2025, revealed that Microsoft had canceled or deferred data center lease agreements that would have increased its compute capacity by at least 2 gigawatts (GW). According to TD Cowen, Microsoft’s change in plans was related to the company’s reluctance to support OpenAI’s incremental training workloads.
Previously, TD Cowen suggested that the collaboration between Microsoft and OpenAI was becoming strained. This was bolstered by an announcement from Microsoft in January 2025, indicating a restructuring of their exclusivity agreement for cloud services.
Changes in Partnership Structure
On January 21, 2025, Microsoft’s official blog outlined the new framework of their partnership with OpenAI. The updated agreement provided OpenAI with the right to use other cloud providers for its operations if Microsoft could not meet its needs. At the same time, Microsoft retained the right of first refusal to host OpenAI’s workloads.
This transformation pointed towards a more flexible partnership arrangement, where both companies can pursue their objectives while ensuring that cloud resources are allocated efficiently.
Microsoft’s Position on Expansion
In light of the cancellations highlighted by TD Cowen, Microsoft issued a statement to Computer Weekly, reaffirming the robust nature of its relationship with OpenAI. The company expressed confidence in its capacity to meet customer demand, thanks to substantial infrastructure investments made so far.
A Microsoft spokesperson mentioned, “Last year alone, we added more capacity than any prior year in history. While we may strategically pace or adjust our infrastructure in some areas, we will continue to grow strongly in all regions.” They emphasized that these adjustments are strategic and intended to enable future growth.
Continuous Investment in Infrastructure
Microsoft has committed to investing over $80 billion in infrastructure during the current fiscal year, indicating that their expansion plans remain on track. The company is adapting to evolving demands and focusing on specific growth avenues that could benefit from this financial commitment.
The spokesperson continued, “This allows us to invest and allocate resources to growth areas for our future.” Their approach demonstrates an effort to balance current capacity with future readiness.
Long-term Collaboration with OpenAI
The partnership between Microsoft and OpenAI has been ongoing since 2019, with both organizations focused on responsibly advancing artificial intelligence research. They aim to make AI technology more accessible to everyone, reflecting a shared commitment to innovation.
Around the same time Microsoft finalized its new cloud deal with OpenAI, OpenAI announced its ambitious Stargate Project, which seeks to significantly enhance its operational infrastructure. This initiative is backed by equity funding from notable firms, including Softbank, Oracle, and MGX, with Microsoft serving in a technological partnership capacity.
Commitment to Innovation
In addressing the partnership with OpenAI, the Microsoft spokesperson reaffirmed, “OpenAI continues to be a great partner. We remain committed to pushing the frontier of AI forward, driving innovation, and making cutting-edge models accessible to our customers and partners.” This statement indicates that despite the current adjustments, both companies are still aligned in their mission to advance AI technologies.
