OpenAI Considers Antitrust Action Against Microsoft Amid Partnership Tensions

Executives at OpenAI have discussed accusing Microsoft of anticompetitive behaviour, potentially triggering a federal regulatory review of their partnership, according to a report by the Wall Street Journal.

Credit: MICROSOFT

The discussions could lead to a public campaign and formal complaints over the terms of Microsoft's investment in OpenAI, which may violate antitrust laws.

OpenAI and Microsoft have been in negotiations for months over the terms of their partnership, including Microsoft's future equity stake and OpenAI's transition into a public-benefit corporation.

Despite the tensions, both companies issued a joint statement saying, "Talks are ongoing and we are optimistic we will continue to build together for years to come."

Microsoft initially invested USD 1 billion in OpenAI in 2019, securing early access to its AI technologies through its Azure cloud platform.

The partnership has since propelled both companies to the forefront of the artificial intelligence industry.

However, OpenAI has been exploring ways to reduce its dependence on Microsoft, including plans to use Alphabet's Google Cloud to meet increasing computing demands.

Microsoft has also been preparing for more independence by integrating internal and third-party AI models into its Microsoft 365 Copilot product, which currently relies heavily on OpenAI.

In response to regulatory scrutiny in the United States and the United Kingdom, Microsoft relinquished its board observer seat at OpenAI last year.

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• OpenAI may seek antitrust review of its partnership with Microsoft

• Talks continue over Microsoft's equity stake and OpenAI's corporate transition

• OpenAI plans to diversify cloud services with Google Cloud

Source: REUTERS