What a way to destroy confidence in Azure, or cloud platforms in general.
But it will work.
The deal was that MS was going to give them billions in exchange for 49% of the for-profit entity. They were also reportedly waiving the azure bill since their interests are aligned.
MS is saying that if we give you 10 billion dollars and don’t charge you for azure, then there are some obvious strings attached.
OpenAI is presumably free to do what the rest of the players in this space are doing and pay for their Azure resources if they don’t want to play nice with their business partners.
He never made the PR and was just there to ask me to implement the thing for his own benefits ....
If I measured the "aggressiveness" of every contract based on the potential litigation of all its clauses, I'd never sign anything.
And in regards to OpenAI, note that (according to TFA), Microsoft has barely distributed any of their committed "$10 billion" of investment. So they have real leverage when threatening to deploy their team of lawyers to quibble over the partnership contract. And I don't think that "undermines confidence" in Microsoft's contractual agreements, given that there are only two or three other companies that have ever partnered with Microsoft at this scale (Apple and Google come to mind).