OpenAI and Microsoft have formed one of the most successful partnerships in technology history, but recently, their relationship seems to be facing increasing tensions. Following a report by The Wall Street Journal on Monday indicating that OpenAI considered accusing Microsoft of anticompetitive conduct and possibly involving regulators, Microsoft has responded by hinting it might withdraw from negotiations with OpenAI.
As reported by the Financial Times, Microsoft may decide to end discussions with OpenAI if the AI firm does not accept a larger equity stake for Microsoft. Sources familiar with the subject revealed that Microsoft aims to maintain the existing commercial agreement until 2030.
Amid OpenAI’s plan to transition from its current for-profit LLC structure to a Public Benefit Corporation (PBC), as noted in BeeBom, Microsoft is pushing to increase its ownership stake. This transition requires Microsoft’s approval; otherwise, OpenAI cannot finalize the change, which would block its ability to secure additional funding. OpenAI needs to complete this conversion by the end of the year.
Earlier reports highlighted that OpenAI was contemplating an antitrust complaint against Microsoft and considering federal regulatory scrutiny of their contract terms. According to The Information, OpenAI has proposed offering Microsoft a 33% stake in the company, but Microsoft desires a larger share.
Furthermore, OpenAI is requesting Microsoft to terminate the Azure exclusivity agreement and wants to exclude Microsoft from accessing Windsurf’s intellectual property rights.
In reaction to The Wall Street Journal’s report, both companies issued a joint statement:
“We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing and we are optimistic we will continue to build together for years to come.”
