OpenAI Considers Antitrust Action Against Microsoft Amid Partnership Tensions

OpenAI executives are weighing whether to accuse Microsoft, their largest investor, of anticompetitive practices, according to a report by the Wall Street Journal. The AI startup, best known for ChatGPT, is reportedly exploring the possibility of initiating a federal antitrust review of its partnership with Microsoft. Sources close to the matter say the company is also considering a public campaign to highlight potential contractual issues that may violate competition laws.

This internal debate comes as tensions rise between the two companies over the terms of their partnership. A key point of contention is OpenAI’s transition into a public-benefit corporation, which still requires Microsoft’s approval. Despite months of negotiations, both sides have yet to reach an agreement on details, particularly regarding Microsoft’s future equity stake in the restructured company.

According to The Information, OpenAI has proposed that Microsoft hold a 33% stake in a new business unit in return for waiving claims to future profits. Additionally, OpenAI is pushing to revise exclusive clauses that give Microsoft the sole right to host its AI models on Microsoft’s cloud services. However, Microsoft has not agreed to these new terms and is said to be requesting further concessions.

The strained relationship could impact one of the most influential alliances in the AI industry. Microsoft originally invested $1 billion in OpenAI in 2019 to support its AI development via the Azure cloud platform. Since then, OpenAI’s reliance on Microsoft has grown, but it is now actively seeking to diversify its cloud providers, including adding Google Cloud to its infrastructure.

Despite the friction, both companies maintain a cautiously optimistic public stance. In a joint statement to Reuters, they emphasized that discussions are still underway and expressed hope to “continue to build together for years to come.” Nonetheless, the outcome of these negotiations could redefine the dynamics of power and control in the evolving artificial intelligence landscape.

Source: Reuters