Adapted by:
Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
Things aren’t going well between the two companies. What began as a promising partnership in 2019 is falling apart six years later. Both companies have been looking for a path for some time. The breakup isn’t definitive, but the process is delicate and reveals the dirty laundry of their relationship.
Growing tension. According to The Wall Street Journal, “tensions are reaching a boiling point.” One factor contributing to the current situation is OpenAI’s intention to become a for-profit company. The existing agreement defining Microsoft’s stake in OpenAI remains a point of contention.
Microsoft wants more. The central debate concerns Microsoft’s stake in the future of OpenAI becoming a for-profit company. According to The Journal, Microsoft is asking for a larger stake than OpenAI is willing to give. If OpenAI doesn’t complete its conversion by the end of the year, it could lose $20 billion.
Dangerous accusations. Sources close to the companies claim that OpenAI executives have accused Microsoft of anti-competitive behavior during their business alliance. OpenAI alleges that Microsoft didn’t offer all its computing power, while Microsoft argues that OpenAI didn’t provide access to its most advanced models quickly enough.
New partner. OpenAI soon began looking for new partners. It found one that has promised much more than Microsoft ever did. That partner is SoftBank, which will invest $40 billion in Sam Altman’s company and contribute to the massive Stargate project.
On one hand, they say one thing. In a joint statement quoted in The Journal, Microsoft and OpenAI officials said, “We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing and we are optimistic we will continue to build together for years to come.”
But on the other hand, they say something else. OpenAI intends to acquire WindSurf for $3 billion. However, the agreement with OpenAI indicates that Microsoft has access to all of OpenAI’s intellectual property. The problem is that OpenAI doesn’t want Microsoft to access WindSurf’s intellectual property. OpenAI already has GitHub Copilot and seems unwilling to let Microsoft use that acquisition to improve its platform.
Meanwhile, they’re competing more and more. Microsoft can access OpenAI’s models and makes money whenever someone uses ChatGPT. Altman’s company continues to benefit from Azure’s massive infrastructure and computing power. Yet both have been taking steps to decouple. Microsoft continues to work on its own AI models—Phi-4 continues to advance—and OpenAI seeks new partners. For example, OpenAI is partnering with Google to leverage its cloud infrastructure.
Related | Apple Is Choosing to Be Just Like Microsoft in the 1990s. It’s Good and Bad News
View 0 comments