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OpenAI Considers Antitrust Action Against Microsoft as Partnership Talks Stall

OpenAI’s shift to a public-benefit corporation remains in limbo following stalled negotiations with Microsoft over governance provisions

Photo illustration: Brendan Lynch/Axios. Photos: Hollie Adams/Bloomberg via Getty Images and Chip Somodevilla/Getty Images
Photo: Justin Sullivan (Getty Images)
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Overview

  • Executives are weighing a regulatory filing and public campaign to challenge alleged anticompetitive terms in their partnership with Microsoft.
  • Completion of OpenAI’s public-benefit conversion hinges on securing Microsoft’s approval after months of unresolved contract talks.
  • The firms have reopened talks on Microsoft’s original $1 billion 2019 investment, including the size of its ongoing equity stake in OpenAI.
  • OpenAI plans to onboard Google Cloud to meet rising compute demands and lessen dependence on Microsoft Azure.
  • Microsoft has sought greater AI independence by integrating its own and third-party models into Microsoft 365 Copilot and relinquishing its board observer seat at OpenAI last year.