Things are not going well for the OpenAI and Microsoft partnership
A pair of reports paint a fraying partnership between Microsoft and OpenAI.
The Wall Street Journal wrote that the companies are still arguing about several issues, including the final size of Microsoft’s stake when OpenAI completes its conversion to a for-profit public benefit corporation, which is needs to finalize before the end of the year.
Things are so bad that OpenAI executives are close to “accusing Microsoft of anticompetitive behavior during their partnership,” the report says, and they may seek federal regulatory review of the agreement on antitrust grounds.
The Information followed with further details of the AI kerfuffle. According to its report, OpenAI wants major concessions from Microsoft, such as a reduced revenue share, an end to its exclusive cloud hosting deal, and permission for its $3 billion acquisition of AI coding app Windsurf.
Microsoft has reportedly resisted the acquisition due to its competing GitHub Copilot AI-assisted coding app.
Things are so bad that OpenAI executives are close to “accusing Microsoft of anticompetitive behavior during their partnership,” the report says, and they may seek federal regulatory review of the agreement on antitrust grounds.
The Information followed with further details of the AI kerfuffle. According to its report, OpenAI wants major concessions from Microsoft, such as a reduced revenue share, an end to its exclusive cloud hosting deal, and permission for its $3 billion acquisition of AI coding app Windsurf.
Microsoft has reportedly resisted the acquisition due to its competing GitHub Copilot AI-assisted coding app.
