OpenAI executives have reportedly discussed accusing Microsoft of anticompetitive behavior in their partnership, according to a Wall Street Journal report. The potential move could involve seeking a federal regulatory review of their contract terms for possible antitrust violations, as well as launching a public campaign.
This development could significantly impact one of the most crucial tech partnerships in the rapidly evolving artificial intelligence sector. OpenAI requires Microsoft’s approval to complete its transition into a public-benefit corporation, but the two companies have been unable to agree on details despite months of negotiations. The discussions include revising Microsoft’s investment terms and its future equity stake in OpenAI.
Representatives from both companies issued a joint statement to the WSJ, saying, “Talks are ongoing and we are optimistic we will continue to build together for years to come.” However, they did not immediately respond to Reuters’ requests for comment.
Microsoft invested $1 billion in OpenAI in 2019 to support the startup’s AI development on its Azure cloud platform. This early investment positioned Microsoft at the forefront of the AI race and propelled both companies to industry leadership.
Since then, OpenAI has sought ways to reduce its reliance on Microsoft. The company plans to add Alphabet’s Google Cloud service to meet its growing computing needs, as reported by Reuters earlier this month. Microsoft has also been working on increasing its independence by incorporating internal and third-party AI models to power its Microsoft 365 Copilot, which currently relies heavily on OpenAI.
Previous regulatory concerns have already led to concessions from Microsoft. Last year, it relinquished its board observer seat at OpenAI to address antitrust scrutiny in the U.S. and the UK regarding its influence over the startup.
The ongoing discussions between OpenAI and Microsoft highlight the complex dynamics at play in the rapidly evolving AI landscape, where major tech companies are forming crucial partnerships while navigating regulatory challenges.
