Tensions boil as OpenAI execs reportedly accuse Microsoft of anticompetitive behavior as partnership frays

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It’s common knowledge that a growing divide has been developing between Microsoft and OpenAI’s massive partnership, as leaders like Salesforce CEO Marc Benioff suggest Microsoft may cease using OpenAI’s technology and AI models in the future. This decision comes after OpenAI announced its $500 billion Stargate initiative to enhance its cloud computing capabilities.

According to a recent article in The Wall Street Journal (WSJ), it appears that disagreements between the two companies have persisted, as the company behind ChatGPT is aiming to transform into a profit-driven organization. Yet, Microsoft seems hesitant to endorse this transition due to potential impacts on its own interests, such as its ownership rights to OpenAI’s intellectual property.

OpenAI is hoping that Microsoft gives its approval so they can transition into a profit-making entity, enabling them to become publicly traded and secure funds for their cutting-edge AI developments. However, Microsoft’s slow response has reportedly caused some tension among OpenAI’s management, leading them to allege that Microsoft engages in anti-competitive business tactics.

Based on reports, allegations of anticompetitive behavior by OpenAI might trigger a federal investigation into the conditions of their multi-billion-dollar partnership agreement, looking for possible breaches of antitrust regulations.

In a joint statement from Microsoft and OpenAI:

Our collaboration over time has proven fruitful, resulting in groundbreaking AI solutions benefiting all. Discussions are still underway, but we remain hopeful that this partnership will endure, allowing us to create more together for many years to come.

It’s worth mentioning that in April, OpenAI completed its biggest purchase by acquiring Windsurf for a whopping $3 billion. This company is renowned for its AI-driven coding tool, which stands toe-to-toe with Microsoft’s GitHub Copilot.

Microsoft’s alliance with OpenAI provides them rights to OpenAI’s intellectual property, encompassing ChatGPT and other technologies such as Windsurf. Yet, insiders close to OpenAI allege that the company is hesitant about granting Microsoft access to Windsurf due to concerns it might foster anti-competitive behaviors.

By the close of this year, OpenAI is under pressure to transform into a profit-driven organization; otherwise, it may be forced to return the massive $20 billion raised in its recent funding round and potentially face a hostile takeover. Financial analysts speculate that Microsoft could purchase OpenAI within the ensuing three years.

It remains undecided if the two companies can find a mutual agreement, as Microsoft desires a greater share in OpenAI’s Public Benefit Corporation than OpenAI is prepared to give. If Microsoft relaxes its grip on the partnership, OpenAI might distribute its technology through various cloud providers, broadening its customer base and also obtaining additional computing power for AI advancements.

It’s worth noting that Microsoft opted out of two large data center projects as they chose not to contribute to further ChatGPT training. On the other hand, Sam Altman, CEO of OpenAI, asserted that the company is no longer computationally limited in this regard.

In simpler terms, Satya Nadella, CEO of Microsoft, expressed his desire to collaborate with OpenAI for many years to come. He mentioned that each successful day for ChatGPT brings joy to Microsoft, as they earn revenue whenever ChatGPT is utilized.

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2025-06-17 01:39