Microsoft is considering legal action against OpenAI and Amazon, the Financial Times (FT) reported on March 18 local time.
The FT said Microsoft is reviewing the matter because OpenAI's selection of Amazon Web Services (AWS) as the supplier of Frontier Cloud, a platform for building and operating enterprise AI agents, may have violated its partnership agreement with Microsoft.
Amazon previously invested $50 billion in OpenAI and, as part of that, gained the ability to offer Frontier on its own cloud.
But Microsoft executives view AWS providing Frontier as a breach of the OpenAI-Microsoft partnership agreement. Under that agreement, OpenAI models can be accessed only through Microsoft Azure cloud.
The companies are holding talks to resolve the issue through negotiations without a lawsuit ahead of the launch of Frontier, the FT said.
Microsoft is one of OpenAI's early investors. It invested $1 billion in October 2019 and $10 billion in early 2023.