Relations Between Microsoft And OpenAI At ‘Boiling Point’: Reports

According to media reports, tensions between Microsoft (MSFT) and privately held OpenAI have reached a “boiling point.”

The Wall Street Journal was the first to report that executives at OpenAI are discussing the possibility of accusing Microsoft of anticompetitive behavior during their current business partnership.

Microsoft first partnered with OpenAI in 2019 and has since invested $14 billion U.S. into the start-up company behind ChatGPT and other artificial intelligence (A.I.) technologies.

In recent years, the relationship between Microsoft and OpenAI has soured.

The situation is now at the point where OpenAI is considering seeking a federal regulatory review of the terms of its contract with Microsoft for potential violations of antitrust laws.

Such a move on the part of OpenAI would damage one of the most important technology partnerships in the A.I. field and might even end the relationship between the two companies.

Analysts seem to agree that the partnership has benefitted both Microsoft and OpenAI as they raced to the head of the A.I. technology pack.

But now, OpenAI appears to be looking for ways to reduce its reliance on Microsoft.

OpenAI has announced plans to adopt Microsoft rival Alphabet’s (GOOGL) Google Cloud service to meet its growing needs for computing capacity, causing tensions between the companies.

Last year, Microsoft gave up its observer seat on OpenAI’s board of directors to address antitrust concerns.

OpenAI is privately held and its stock does not trade on a public exchange. MSFT stock has risen 15% this year to trade at $479.14 U.S. per share.