The most famed bromance between OpenAI and Microsoft is reportedly under severe tension. Microsoft is OpenAI’s closest partner and has invested billions of dollars into the hot AI startup. Along with that, Microsoft has provided Azure cloud infrastructure for the past six years to train AI models and provide inference. Now, a new report says that OpenAI considered an antitrust complaint against Microsoft.
According to people familiar with the matter told The Wall Street Journal that in recent weeks “OpenAI’s executives have discussed what they view as a nuclear option: accusing Microsoft of anticompetitive behavior during their partnership.”
Not only that, OpenAI may seek “federal regulatory review of the terms of the contract for potential violations of antitrust law, as well as a public campaign.”
If the report turns out to be true, it would be a huge setback for the AI industry. Microsoft has backed OpenAI from the very beginning with financial resources and cloud infrastructure support. Microsoft’s backing has allowed OpenAI to flourish and train frontier AI models. In return, Microsoft has been getting access to OpenAI’s latest AI technologies.
OpenAI and Microsoft are clashing over OpenAI’s $3 billion acquisition of Windsurf, a coding AI assistant that competes with Microsoft’s GitHub Copilot. Under the current agreement, Microsoft has access to all of OpenAI’s IP (intellectual property). Now, Microsoft wants the same access to Windsurf’s IP, but OpenAI is resisting this move.
Besides that, OpenAI dropped its plan to become a for-profit company; however, the company has said that its for-profit LLC will transition to a Public Benefit Corporation (PBC). Now, Microsoft wants a larger stake in the PBC, but OpenAI is again unwilling to give.
According to The Information, OpenAI is willing to give a 33% stake in the new company, but Microsoft has to end the Azure exclusivity agreement, give up its future profit rights, and exempt Windsurf from IP rights. OpenAI has to complete the transition by year’s end or it may lose nearly $20 billion in funding.
To the Journal’s reporting, Microsoft and OpenAI responded in 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.“
OpenAI is Looking Beyond Microsoft
The recent report by the Journal is in line with earlier reports which indicate that OpenAI’s relationship with Microsoft has strained considerably. Last year, we reported that Microsoft AI chief Mustafa Suleyman yelled at OpenAI employees over the delayed transfer of AI technologies. The report said that OpenAI views Microsoft as a competitor and wants greater independence from the tech giant.
In fact, OpenAI was considering using the AGI clause which says that if OpenAI achieves AGI internally, it will stop sharing AI advancements with Microsoft. However, Microsoft wants access to OpenAI’s AI models even after the startup achieves AGI (Artificial General Intelligence).
OpenAI is also looking beyond Microsoft for cloud resources. In June last year, Microsoft allowed OpenAI to purchase cloud resources from Oracle. The agreement said that OpenAI must use Microsoft Azure for all its cloud needs. And now, Reuters reports that OpenAI is partnering with Google to use the Google Cloud infrastructure to meet the consumer demand.
Increasingly, OpenAI is trying its best to reduce its dependency on Microsoft. And Taiwanese media reports that OpenAI may start using its ASIC chip for AI training by the end of this year. The chip has been designed by Broadcom and manufactured on TSMC’s 3nm process node.
Finally, in 2025, OpenAI announced The Stargate Project along with Oracle, Softbank, and MGX to build a mega AI factory for training and inference. Interestingly, Microsoft was absent from the announcement. It’s quite evident that OpenAI is preparing for the future, and the startup doesn’t want Microsoft in it.
