Microsoft is weighing legal action against OpenAI and Amazon over a reported $50 billion deal that could breach its exclusive cloud agreement, according to the Financial Times.
The issue stems from a recent partnership in which Amazon Web Services (AWS) was named the exclusive third-party cloud provider for Frontier, OpenAI’s enterprise platform for building and running AI agents.
At the center of the dispute is whether offering Frontier through AWS violates Microsoft’s deal, which requires OpenAI’s models to be accessed via its Azure cloud. Microsoft maintains that Azure remains the exclusive provider for OpenAI’s APIs and says it expects OpenAI to honor that obligation.
While Amazon and OpenAI have not commented, Microsoft insiders reportedly believe the move conflicts with the spirit of their agreement. However, discussions are ongoing, and both sides are trying to resolve the issue before Frontier launches, potentially avoiding legal action.
Microsoft, one of OpenAI’s earliest backers with over $11 billion invested, recently updated its partnership terms, allowing OpenAI to explore deals with companies like Amazon, Nvidia, and SoftBank.