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The celebrated partnership between OpenAI and Microsoft appears to be facing significant challenges. Microsoft, as OpenAI’s primary ally, has poured billions into the rapidly evolving AI startup. Furthermore, the tech giant has supplied Azure cloud infrastructure for six years, enabling the training of AI models and delivering inference services. Now, reports indicate that OpenAI is contemplating filing an antitrust complaint against Microsoft.
Sources familiar with the situation told The Wall Street Journal that OpenAI executives have recently discussed a “nuclear option”: accusing Microsoft of engaging in anticompetitive practices during their collaboration.
Additionally, OpenAI may pursue “federal regulatory review of contract terms for potential antitrust violations, alongside a public campaign.”
If these claims hold water, it would represent a significant blow to the AI sector. Microsoft has been integral to OpenAI’s growth, providing both financial backing and cloud resources. This support has enabled OpenAI to develop cutting-edge AI models, while Microsoft has benefited from access to these innovations.
OpenAI and Microsoft are clashing over OpenAI’s recent $3 billion acquisition of Windsurf, a coding AI assistant that poses competition to Microsoft’s GitHub Copilot. Under their current agreement, Microsoft has access to all of OpenAI’s intellectual property. However, Microsoft is now seeking the same access to Windsurf’s IP, which OpenAI is resisting.
Furthermore, OpenAI has abandoned its ambition to become a for-profit entity, opting instead to transition its for-profit LLC into a Public Benefit Corporation (PBC). Microsoft desires a larger stake in this PBC, but OpenAI is hesitant to grant it.
As noted by The Information, OpenAI is prepared to offer a 33% equity stake in the new venture, but this is contingent on Microsoft terminating its exclusivity agreement with Azure, relinquishing future profit entitlements, and excluding Windsurf from IP rights. OpenAI must complete this transition by the end of the year to avoid losing nearly $20 billion in funding.
In response to the reports, Microsoft and OpenAI issued a joint statement: “We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing, and we are optimistic about continuing to build together for years to come.”
OpenAI is Exploring Alternatives
The latest report aligns with previous indications that the relationship between OpenAI and Microsoft has significantly soured. Last year, reports surfaced of Microsoft AI chief Mustafa Suleyman raising his voice at OpenAI employees over delays in transferring AI technologies. It appears that OpenAI now views Microsoft as a competitor and is seeking greater autonomy from the tech giant.
Interestingly, OpenAI has explored the AGI clause, which states that if OpenAI achieves AGI internally, it will cease sharing advancements with Microsoft. Yet, Microsoft desires continued access to OpenAI’s models even after AGI is attained.
In addition, OpenAI is looking beyond Microsoft for cloud services. In June of last year, Microsoft permitted OpenAI to procure cloud resources from Oracle, with the condition that OpenAI would still utilize Microsoft Azure for its cloud requirements. Now, Reuters reports that OpenAI is collaborating with Google to leverage Google Cloud infrastructure to meet consumer demand.
OpenAI is increasingly striving to minimize its reliance on Microsoft. Reports from Taiwanese media suggest that OpenAI might begin utilizing its custom ASIC chip for AI training by year-end. This chip, designed by Broadcom and manufactured on TSMC’s 3nm process node, promises enhanced performance.
Finally, in 2025, OpenAI unveiled The Stargate Project in conjunction with Oracle, Softbank, and MGX to establish a massive AI factory for training and inference. Notably, Microsoft was not included in this announcement, demonstrating that OpenAI is preparing for a future that may not involve its longtime partner.
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