OpenAI Threatens Lawsuit as Microsoft Blocks AI Giant’s Wall Street Dream

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OpenAI clashes with Microsoft over AI future, threatens lawsuit

Tensions between OpenAI and Microsoft reach all-time high amid clash over company’s future.

It appears that the highly productive collaboration between OpenAI and Microsoft could potentially be facing challenges, as suggested by recent news from The Wall Street Journal on June 17. The article indicates that discussions between these tech giants have hit a snag, and OpenAI is contemplating taking legal measures.

At present, Microsoft is preventing OpenAI from transitioning into a publicly traded profit-oriented company. This obstacle has led OpenAI’s management to consider filing an antitrust lawsuit against Microsoft and request a reevaluation of their contractual agreements.

To put it simply, Microsoft has special privileges in using OpenAI’s technology and is exclusively allowed to be their computing service provider. However, despite this tight partnership, both entities are starting to act more like rivals.

For instance, GitHub Copilot, Microsoft’s AI coding companion, goes head-to-head with OpenAI’s offering, Windsurf. Moreover, Microsoft is working on creating their own sizeable language model, potentially lessening their reliance on ChatGPT from OpenAI in the future.

OpenAI moves toward a for-profit model

The underlying cause of the strain is OpenAI’s proposed shift from its present, revenue-capped business model to a publicly beneficial for-profit corporation. This change would enable the company to simultaneously prioritize financial gain and serve the wider public interest in AI technology, as well as pave the way for an initial public offering and the possibility of raising billions of dollars.

Nevertheless, OpenAI requires Microsoft’s consent before proceeding with this action since they are one of the significant investors. It’s said that Microsoft aims to increase its shareholding in the company beyond its current position.

Beginning from 2019, Microsoft has poured nearly $14 billion into OpenAI. As of now, it is the primary shareholder, holding 49% of the shares in OpenAI LP, the profit-driven arm of OpenAI. By 2025, Microsoft appraised its ownership stake within the company at an astounding $147 billion.

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2025-06-17 16:09