Due to AI power play, OpenAI contemplated suing Microsoft for anticompetitive behavior

OpenAI and Microsoft — two of the biggest names in artificial intelligence — are reportedly at odds over the future of their partnership, despite public statements of optimism.

According to reports from The Wall Street Journal, The Information, and Reuters, OpenAI has considered accusing Microsoft, its biggest financial backer, of anticompetitive behavior and even pushing for federal regulatory review of their ongoing contract. While no formal complaint has been filed, the discussions reflect rising internal tension.

Key points of contention:

• Equity and Profit Sharing
  OpenAI wants to restructure its business into a public-benefit corporation, but needs Microsoft’s approval to move forward. As part of this restructuring:

  • OpenAI has proposed that Microsoft get a 33% stake in a new entity — in exchange for giving up rights to future profits.

  • Microsoft has not accepted this offer and is reportedly demanding additional concessions.

  • OpenAI also told some investors that it plans to reduce the revenue share given to Microsoft from 20% to 10% by 2030.

• Cloud Hosting Exclusivity
  Currently, Microsoft has exclusive rights to host OpenAI’s models via Azure. OpenAI is seeking to revise this exclusivity, aiming to bring Google Cloud into the mix to meet increasing compute demand.

• Access to Windsurf IP
  OpenAI's recent $3 billion acquisition of Windsurf, a startup focused on AI coding, has sparked another dispute. Microsoft reportedly wants access to Windsurf's IP — likely to benefit its GitHub Copilot tool — but OpenAI is pushing back.

Public vs Private Positions:

• Publicly, both companies issued a joint statement saying:
  “Talks are ongoing and we are optimistic we will continue to build together for years to come.”

• Privately, there’s clear disagreement over profit sharing, hosting rights, and IP access — issues that could reshape how the two companies collaborate in AI moving forward.

Why It Matters:

• Microsoft has invested over $13 billion in OpenAI since 2019 and deeply integrated its models into products like Copilot, Bing, and Microsoft 365.

• If the relationship deteriorates or the structure changes, it could reshape the commercial AI landscape, affecting not only these companies but also how AI services are distributed across the tech world.

Bottom line:

OpenAI and Microsoft are publicly aligned but privately locked in strategic disputes over control, profits, and access to technology. How this plays out could significantly impact the future of both AI development and competition in the space.