OpenAI is reportedly considering leveling anti-competition allegations against Microsoft (MSFT, Financial) as tensions between the two companies escalate. OpenAI aims to reduce Microsoft's influence over its AI products and computing resources and seeks approval to transition into a profit-driven entity, which is crucial for further financing and a potential IPO.
With negotiations at a standstill, OpenAI's leadership has reportedly discussed the extreme measure of accusing Microsoft of anti-competitive behavior. This could include requesting federal regulators to review contract terms or initiating a public campaign. Such a move could jeopardize their six-year partnership, considered one of the most successful collaborations in tech history.
Over the years, Microsoft has provided funding to propel OpenAI's growth while gaining priority access to its technology. However, the companies are now competitors in several areas, making it harder to align. Representatives from both firms recently confirmed ongoing negotiations and expressed optimism about future collaboration.
The stalemate extends to Microsoft's $3 billion acquisition of coding startup Windsurf, with disagreements over intellectual property access and Microsoft’s stake in OpenAI if it transitions to a for-profit model. OpenAI risks losing $20 billion in funding if the transformation isn't completed by year-end.
