OpenAI considers suing Microsoft over anticompetitive behavior
What's the story
OpenAI executives are considering accusing their primary investor, Microsoft, of anticompetitive behavior.
According to a report in The Wall Street Journal, the AI firm may request a federal review of its contract with Microsoft.
This move could potentially challenge one of the most significant tech collaborations in artificial intelligence (AI).
OpenAI is in the process of transforming into a public-benefit corporation, a transition that necessitates approval from Microsoft.
Partnership strain
Negotiations have been challenging
Tensions are escalating between OpenAI and Microsoft over the future of their partnership.
OpenAI is seeking to reduce Microsoft's control over its AI products and computing resources, while also securing approval for its transition into a public-benefit corporation.
However, negotiations have been challenging, leading to discussions among OpenAI executives about potentially accusing Microsoft of anti-competitive behavior during their partnership.
Stalemate
Companies are also at an impasse over Windsurf acquisition
The two companies are also at an impasse over the terms of OpenAI's $3 billion acquisition of coding start-up Windsurf.
Currently, Microsoft has access to all of OpenAI's intellectual property under their agreement.
The companies are also in disagreement over how much of OpenAI Microsoft would own if it converts into a public-benefit corporation.
Strategic shifts
OpenAI, Microsoft are preparing for greater autonomy
Since Microsoft's $1 billion investment in 2019, OpenAI has been exploring ways to lessen its dependence on the tech giant.
The company plans to incorporate Google's Cloud service into its operations.
Meanwhile, Microsoft is preparing for greater autonomy by integrating internal and third-party AI models into its flagship product, Microsoft 365 Copilot.