OpenAI and Microsoft are hitting a breaking point in their tense partnership, according to The Wall Street Journal.
OpenAI execs have considered publicly accusing Microsoft of anticompetitive behavior. They’re also weighing a federal regulatory review of their contract with the tech giant.
The core issue: OpenAI wants to loosen Microsoft’s hold on its intellectual property and cloud computing resources. But OpenAI still needs Microsoft’s green light to transition fully into a for-profit model. 
The standoff escalated over OpenAI’s $3 billion acquisition of AI coding startup Windsurf. OpenAI doesn’t want Microsoft to snag Windsurf’s IP, which could level up Microsoft’s GitHub Copilot AI tool.
Microsoft once turbocharged OpenAI’s growth. Now, OpenAI is reportedly trying to cut down its reliance on Microsoft’s cloud services amid rising tensions.
This split could reshape future AI power dynamics between the two companies.
