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The Journal.

The Unraveling of OpenAI and Microsoft's Bromance

28 Jan 2025

Description

Some of the world’s most prominent names in technology are pledging billions to build artificial-intelligence infrastructure in the U.S. in a joint venture called Stargate. Notably missing? Microsoft. WSJ’s Tom Dotan explains how the partnership that launched the AI boom has deteriorated. Further Reading: - Tech Leaders Pledge up to $500 Billion in AI Investment in U.S.  - OpenAI’s Stargate Deal Heralds Shift Away From Microsoft  - Musk Pours Cold Water on Trump-Backed Stargate AI Project  Further Listening: - Artificial: The OpenAI Story  - What's the Worst AI Can Do? This Team Is Finding Out.  Learn more about your ad choices. Visit megaphone.fm/adchoices

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Transcription

Full Episode

5.635 - 11.618 Kate Leinbaugh

At the White House last week, OpenAI CEO Sam Altman was part of a big announcement.

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12.899 - 30.248 Tom Dotan

His event at the White House was alongside the leaders of three leading artificial intelligence companies that are committing billions into a joint venture called Stargate. Stargate will build data centers and help generate electricity to support AI. A $500 billion private venture to focus on AI.

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32.443 - 48.381 Kate Leinbaugh

Alongside Altman, there was President Donald Trump and two other CEOs, one from the database software company Oracle and the other from tech investor SoftBank. What stood out to you about the presser?

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49.082 - 64.008 Tom Dotan

This was clearly a big deal for all the involved people. The image of all these guys in the White House talking about this and the enormous amounts of money that they were planning to raise and deploy in service of this project. I don't know. It was a whole to do.

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65.089 - 74.393 Kate Leinbaugh

That's our colleague Tom Dothan. Tom said there was another thing that stood out. One major player who wasn't part of the show.

75.515 - 85.061 Tom Dotan

Not pictured, not up there talking in front of the press was Microsoft. And the CEO, Satya Nadella, was thousands of miles away in Davos for the World Economic Forum.

86.882 - 88.963 Kate Leinbaugh

And why is that interesting that he wasn't there?

89.813 - 114.944 Tom Dotan

Microsoft is the sugar daddy of, so to speak, of OpenAI. They have poured more money by a huge margin than anyone else into this company. And Sam Altman appears at almost every Microsoft event. Anytime they're rolling out a giant new piece of software that involves OpenAI's products in there, or they just generally have a big event, Sam and Satya will usually be there on stage.

116.243 - 123.344 Tom Dotan

To go from that to one of the biggest announcements in OpenAI's history and Satya Nadella is not there is like pretty striking.

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