The relationship between OpenAI and Microsoft appears to be growing increasingly strained, according to recent reports highlighting significant tensions between the two technology giants. Anonymous sources have indicated that executives at OpenAI have seriously considered making public allegations against Microsoft regarding anticompetitive behavior in the context of their existing partnership. Additionally, these executives have debated whether to push for a federal regulatory review of their contractual agreements with Microsoft.
Reportedly, core to the tensions is OpenAI’s desire to regain greater autonomy over its intellectual property and computing infrastructure—currently heavily tied to Microsoft’s resources. At the same time, OpenAI’s proposed transition into a fully for-profit entity hinges on approval from Microsoft, complicating their attempts to assert independence.
Conflicts between the companies have intensified around the recent acquisition of Windsurf, an AI code-generation startup purchased by OpenAI for approximately $3 billion. At the center of this dispute is Windsurf’s intellectual property, which OpenAI is reluctant to share with Microsoft. Executives are concerned Microsoft could use it to significantly boost its own GitHub Copilot AI coding service, an outcome OpenAI appears determined to avoid.
Once seen as a critical partner that greatly accelerated OpenAI’s business growth, Microsoft’s relationship with the AI leader now shows clear signs of tension. In previous months, OpenAI has actively worked to scale back its reliance on Microsoft’s cloud computing services, suggesting an escalating shift away from the dependency that once characterized their collaboration.
