Microsoft's partnership with OpenAI has significantly bolstered its cloud business, but internal documents reveal that Amazon initially had a closer relationship with OpenAI. In 2016, OpenAI operated on Amazon Web Services under a $50 million computing deal. Microsoft CEO Satya Nadella sought to change this dynamic and reached out to OpenAI's Sam Altman. By November 2016, Microsoft secured a partnership with OpenAI, which included a $50 million compute donation over three years. The relationship took on new urgency with the launch of ChatGPT on November 30, 2022. This chatbot quickly became a sensation, reaching 100 million users in just two months. OpenAI's board learned about the launch via social media, highlighting internal communication failures. Tensions escalated when, on November 17, 2023, OpenAI's board unexpectedly ousted Altman, citing a lack of transparency. This decision caught Microsoft off guard, as it had not been consulted. In the wake of Altman's firing, Microsoft acted swiftly. Nadella communicated with Altman and proposed creating a new subsidiary, Microsoft RAI Inc., to absorb OpenAI's team. The estimated cost to integrate this team was around $25 billion, a figure reflecting the value of employee compensation and unvested equity. This rapid response emphasized Microsoft's commitment to maintaining its foothold in AI development, especially amid upheaval at OpenAI.