The new agreement is set to remove one of several barriers for the startup, which is seeking to restructure and become a for-profit company.

Microsoft is taking its biggest step to lessen reliance on OpenAI’s artificial intelligenceby embracing the startup’s bitter rival Anthropic to power its most important software business. Microsoft will pay to use Anthropic’s technology for some AI features in Office 365 apps,

Microsoft Corp. struck a multiyear deal worth nearly $20 billion to get AI cloud computing power from Nebius Group NV, the technology company spun out from Russian internet giant Yandex.

Microsoft will pay to use Anthropic's technology for some AI features in Office 365 apps, the Information reported on Tuesday, in a sign that the software firm is diversifying its artificial intelligence portfolio.

CoreWeave’s stock is rising as well, as big hyperscalers could partner more with neoclouds to meet booming AI demand.

According to reports, Microsoft intends to begin incorporating Anthropic’s technology into its products. The decision to diversify its AI system represents

Microsoft deepens ties with the US government, offering AI tools and discounts to modernize services, boost security, and save billions in IT costs.

Microsoft has a crucial partnership with OpenAI, but the companies have been drifting apart lately.

Microsoft warns of latency as Red Sea cable cuts disrupt internet across Middle East and South Asia - SiliconANGLE

Details on the new commercial arrangements were not disclosed, but the companies said they were working to finalize terms of a definitive agreement. This marks a step forward in OpenAI's prolonged talks with Microsoft as the former seeks to raise capital under a more common governance structure and eventually go public to fund artificial intelligence development.