In a surprising development, OpenAI executives are reportedly considering accusing Microsoft, its largest financial backer, of anticompetitive behavior. According to reports from The Wall Street Journal, OpenAI may seek a federal regulatory review of its agreement with Microsoft to examine possible violations of antitrust laws. If it goes ahead, this potential move could severely undermine one of the most powerful partnerships in the artificial intelligence industry.
Negotiations Over Equity and Profit Paled
A major sticking point is OpenAI’s plan to convert to a public-benefit corporation. This transformation requires Microsoft’s approval, which has not yet been granted. OpenAI is reportedly proposing that Microsoft hold a 33 percent stake in the restructured entity while giving up future profit rights. Microsoft, having invested over 13 billion dollars in OpenAI, is asking for a larger equity share in return.
For months, negotiations have dragged on without success. Microsoft wants to protect its substantial investment, while OpenAI wants to be able to become more independent and flexible as it grows.
Cloud Hosting and IP Issues Strain the Relationship Even Further
Another important sticking point is cloud hosting rights. Currently, Microsoft has exclusive rights to host OpenAI’s models on Azure. OpenAI has proposed a modification to that arrangement in order to use Google Cloud services to accommodate its growing infrastructure needs. Microsoft has not accepted this proposal and, reportedly, is asking for further concessions in return.
In addition, OpenAI’s planned acquisition of the coding startup Windsurf has raised concerns over intellectual property rights. The agreement between the two companies gives Microsoft access to all of OpenAI’s intellectual property. But because Microsoft and OpenAI now offer competing coding tools, OpenAI wants to ensure that Windsurf’s IP is not included in Microsoft’s access.
The Future of the AI Partnership
There is also disagreement about whether Microsoft would continue to have access to OpenAI’s technology after the company achieves artificial general intelligence (AGI). Microsoft wants ongoing access, while OpenAI seeks more control over its future innovations.
Although the tensions in their relationship are continuing to escalate, both companies were quick to affirm the success of their long-term relationship. In a joint statement to the media, they stated that they have a valuable partnership that has “delivered powerful AI tools” and expressed excitement about building together in the future.
As the discussions continue, the outcome may influence not only how OpenAI and Microsoft move forward but may shift the entire trajectory of AI development and the landscape in terms of technology partnerships in general.
