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Microsoft is reportedly considering legal action against OpenAI and Amazon over a $50bn deal that may breach its exclusive cloud partnership with the ChatGPT maker. The conflict stems from a recent agreement making Amazon Web Services (AWS) the exclusive third-party cloud provider for Frontier, OpenAI’s enterprise AI agent platform. Microsoft maintains that “Azure remains the exclusive cloud provider of stateless OpenAI APIs” and has expressed confidence that OpenAI understands its legal obligations. However, Microsoft executives reportedly believe the AWS arrangement violates the spirit of their agreement, if not its explicit terms. The companies are currently in talks to resolve the dispute before Frontier’s launch. However, Microsoft has made its position clear stating that it will pursue litigation if necessary. Microsoft has been a foundational investor in OpenAI since 2019, contributing a total of $11bn.
Dollar bonds of Microsoft and Amazon traded stable. For instance, Microsoft’s 5.3% 2041s were at 102.2, yielding 5.08%. Amazon’s 1.65% 2028s were trading at 95.1, yielding 4.08%
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