Is this the end of the love affair? It appears so with OpenAI and Microsoft Corp's (NASDAQ:MSFT) relationship having reportedly descended into bickering and threats.
According to the Wall Street Journal, fissures have emerged over control of technology and strategic direction.
Citing unnamed sources, the report says OpenAI executives have considered accusing Microsoft of anticompetitive practices and even exploring a federal review of their agreement.
The friction centres on OpenAI’s efforts to reduce Microsoft’s control over its intellectual property and cloud infrastructure, while still requiring the tech giant’s sign-off to finalise its transition to a for-profit entity.
A key flashpoint is OpenAI’s planned $3 billion acquisition of Windsurf, an AI coding firm.
OpenAI is reportedly keen to block Microsoft from gaining Windsurf’s technology, which could strengthen GitHub Copilot, Microsoft’s own AI coding assistant.
Microsoft has invested around $11 billion for a 49% stake in OpenAI, which is now estimated to be worth $147 billion.