OpenAI Weighs Antitrust Action Against Microsoft as AI Partnership Frays

The partnership could get a serious hit

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Even though Satya Nadella is quite optimistic about the partnership with OpenAI, the latest reports suggest otherwise. According to The Wall Street Journal, OpenAI executives have considered accusing Microsoft, its biggest financial partner, of anticompetitive behavior.

The dispute centers on the terms of their partnership. OpenAI is reportedly weighing a federal antitrust complaint and a public campaign against Microsoft. If that happens, it could unravel one of AI’s most important collaborations.

Remember, OpenAI can’t complete its move to a public-benefit corporation without Microsoft’s approval. But even after months of talks, both sides are stuck. The sticking points include Microsoft’s future equity stake and its exclusive rights to host OpenAI models on Azure.

In a separate report, The Information claims that OpenAI is offering Microsoft a 33% stake in a restructured unit—but only if it gives up claims to future profits. Microsoft hasn’t agreed and is now asking for additional concessions.

Meanwhile, OpenAI is preparing to rely less on Microsoft. It’s bringing in Google Cloud to support its growing compute needs, reducing its dependence on Azure.

Despite the rising tension, both sides say they’re still talking. “Talks are ongoing and we are optimistic we will continue to build together for years to come,” the companies said in a joint statement to Reuters.

More about the topics: microsoft, OpenAI

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