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Microsoft considers suing Amazon and OpenAI over $50 billion deal

Microsoft may be about to take its biggest AI partner to court, the Financial Times reports.

Microsoft, a longtime backer of OpenAI, is weighing legal action over the latter’s $50 billion deal with Amazon tied to its new Frontier AI product, arguing it could violate a key clause in their exclusive cloud deal requiring OpenAI’s models to run through Azure. Amazon and OpenAI say they’ve found a workaround. Microsoft executives disagree.

“We know our contract,” a source told the FT. “We will sue them if they breach it. If Amazon and OpenAI want to take a bet on the creativity of their contractual lawyers, I would back us, not them.”

OpenAI, which is eyeing an IPO this year and under pressure to generate more revenue, is trying to loosen Microsoft’s grip as it scales, while Microsoft increasingly sees OpenAI as both a partner and competitor.

Microsoft weighs legal action over $50bn Amazon-OpenAI cloud deal

Microsoft weighs legal action over $50bn Amazon-OpenAI cloud deal

“We know our contract,” a source told the FT. “We will sue them if they breach it. If Amazon and OpenAI want to take a bet on the creativity of their contractual lawyers, I would back us, not them.”

OpenAI, which is eyeing an IPO this year and under pressure to generate more revenue, is trying to loosen Microsoft’s grip as it scales, while Microsoft increasingly sees OpenAI as both a partner and competitor.

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Here’s another sign Anthropic’s enterprise tools are killing it: The AI firm now captures 73% of all spending among companies buying AI tools for the first time, Axios reports, citing data from Ramp, a fintech company that provides corporate cards and expense management software. That’s up from 50% in January, when it was tied with OpenAI.

As we’ve noted, Big Tech is pivoting from experimentation to revenue — and enterprise is where that shift is playing out.

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Morgan Stanley says robotaxis could help Tesla sell more cars

Morgan Stanley analysts think Tesla’s robotaxi push could boost more than just a new business line — it could help sell more cars and software, too.

After visiting Giga Texas, analysts said they’re more optimistic about Tesla’s progress toward an unsupervised robotaxi rollout, with improvements in tricky pickup and drop-off scenarios where Tesla doesn’t have as much data from consumer usage. For now, the vast majority of its vehicles still have human supervisors in the front seat, but the analysts say the service is helping Tesla.

“Incremental unsupervised robotaxi miles driven improve the underlying autonomy model, which accelerates the path to personal unsupervised FSD [Full Self-Driving]. This, in turn supports higher FSD attach rates, improves auto demand, and cash flow generation.”

In other words, the more robotaxis drive, the better Tesla’s self-driving gets — and that could make its Full Self-Driving software more appealing and its cars easier to sell, in addition to improving its robotaxi service. Note that Tesla’s vehicle deliveries, which accounts for the lion’s share of the company’s revenue, have dropped two years in a row.

Morgan Stanley also sees a cost advantage. It estimates Tesla’s robotaxis could cost about $0.81 per mile to run today — cheaper than traditional ride-hailing and rival autonomous services — with costs falling further as purpose-built vehicles like the Cybercab scale.

Morgan Stanley maintained its equal-weight rating and $415 price target, about 4% above where the stock is currently trading.

Big Tech companies are now racing to see who can build the best AI coworker

After years of trying to have the best model, Big Tech is getting serious about the business side of AI.

Man Working at Vintage Computer

Amazon CEO Andy Jassy told employees at an all-hands meeting on Tuesday that he sees AI growing AWS sales to $600 billion a year by 2036, Reuters reports — double his prior estimate and more than 4x last year’s revenue.

Shares of Amazon, which were already up for the day, moved modestly higher on the heels of the report.

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Jon Keegan3/17/26

OpenAI snags Amazon AWS deal for classified government work with Anthropic pushed aside

Following Anthropic being deemed a “supply chain risk” to national security, the field is clear for OpenAI. The Information is reporting that OpenAI just landed a deal with Amazon AWS to sell its AI services to government employees for both classified and unclassified work.

Previously, OpenAI was contractually obliged to use Microsoft Azure cloud hosting for the government contracts it handled as part of its $13 billion deal with the software giant, but since it restructured as a for-profit public benefit corporation and renegotiated the terms of the deal, OpenAI is free to use AWS, which is more commonly used in government work.

According to the report, contracts that sell AI services through another company like Amazon can be much larger then direct contracts with the government, which is crucial for OpenAI as it chases the success that Anthropic has had with enterprise customers.

OpenAI Clinches AWS Deal in Bid to Win Government Contracts

OpenAI Clinches AWS Deal in Bid to Win Government Contracts

Previously, OpenAI was contractually obliged to use Microsoft Azure cloud hosting for the government contracts it handled as part of its $13 billion deal with the software giant, but since it restructured as a for-profit public benefit corporation and renegotiated the terms of the deal, OpenAI is free to use AWS, which is more commonly used in government work.

According to the report, contracts that sell AI services through another company like Amazon can be much larger then direct contracts with the government, which is crucial for OpenAI as it chases the success that Anthropic has had with enterprise customers.

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