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OpenAI-Microsoft Relationship Shows Signs of Widening Cracks

ByYasmeeta Oon

Jun 19, 2025

OpenAI-Microsoft Relationship Shows Signs of Widening Cracks

OpenAI and Microsoft appear to be approaching a turning point in their partnership, according to reports citing anonymous sources. Internal discussions at OpenAI have considered publicly accusing Microsoft of anticompetitive practices and possibly requesting federal regulatory scrutiny of their contract.

Intellectual Property and Control Issues

OpenAI is seeking to regain control over its intellectual property and computing resources. However, the company still requires Microsoft’s consent to finalize its transition to a for-profit model.

A key point of contention is OpenAI’s $3 billion acquisition of AI coding startup Windsurf. OpenAI reportedly wants to prevent Microsoft from gaining access to Windsurf’s intellectual property, which could strengthen Microsoft’s own AI tool, GitHub Copilot.

Microsoft initially played a significant role in accelerating OpenAI’s growth, particularly through cloud services and investment. However, recent months have seen OpenAI actively attempting to reduce its dependence on Microsoft’s cloud infrastructure.

What The Author Thinks

The evolving friction between OpenAI and Microsoft highlights a natural progression as AI startups scale and seek autonomy. While Microsoft’s early support was crucial, OpenAI’s attempts to reclaim intellectual property and diversify its cloud services signal growing confidence and strategic repositioning. This tension is a reminder that in fast-moving tech fields, partnerships must balance collaboration with competitive interests, and independence often becomes a priority as companies mature.


Featured image credit: World Economic Forum via Flickr

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Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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