The relationship between OpenAI and Microsoft, once hailed as a model tech partnership, has deteriorated to the point where OpenAI executives are contemplating what they internally call the "nuclear option" - filing antitrust claims against their biggest investor.
According to a Wall Street Journal report published June 16, OpenAI is considering seeking a federal regulatory review of its contract with Microsoft for potential antitrust violations. The AI startup might also launch a public campaign highlighting what it views as Microsoft's anticompetitive behavior in their partnership.
At the heart of the dispute is OpenAI's desire to restructure as a public-benefit corporation, which requires Microsoft's approval. After months of negotiations, the companies remain at odds over several key issues. OpenAI wants Microsoft to accept a 33% stake in the restructured entity in exchange for foregoing rights to future profits. The ChatGPT maker also seeks to modify clauses giving Microsoft exclusive rights to host OpenAI models in its Azure cloud.
The tensions reflect OpenAI's broader strategy to reduce its dependence on Microsoft while preparing for a potential future IPO. Since Microsoft's initial $1 billion investment in 2019, OpenAI has received over $13 billion from the tech giant. However, the relationship has evolved from collaborative to increasingly competitive as both companies develop enterprise AI products.
In financial projections shared with investors in May, OpenAI indicated it plans to reduce Microsoft's revenue share by at least half by the end of this decade. The company is also exploring partnerships with other cloud providers, including Google Cloud, to diversify its computing infrastructure.
Despite the escalating tensions, both companies issued a joint statement expressing optimism: "Talks are ongoing and we are optimistic we will continue to build together for years to come." However, industry observers note that the outcome of these negotiations could reshape the AI landscape, potentially altering how foundational AI models are developed and commercialized.