Microsoft and OpenAI have significantly expanded their partnership, with Microsoft now having full access to OpenAI's system-level intellectual property. The two companies will jointly develop custom AI accelerators, a move aimed at creating a more vertically integrated AI infrastructure. This collaboration tightens the strategic alliance between the two tech giants. The new deal allows Microsoft to design its own silicon, reducing its dependency on Nvidia for high-performance chips and putting it on a more even footing with competitors like Google and Amazon who also develop in-house chips. The custom accelerators will first be deployed by OpenAI before being integrated into Microsoft's own cloud infrastructure, ensuring Microsoft can leverage these hardware innovations for its global customer base.