OpenAI has reportedly considered accusing Microsoft of anticompetitive behavior in their partnership, according to a Wall Street Journal article published on Monday, which cited sources familiar with the situation.
The artificial intelligence startup may take steps to challenge the terms of its contract with Microsoft, possibly seeking a federal regulatory review for potential antitrust violations.
The move could potentially disrupt one of the most significant collaborations in the rapidly expanding AI industry.
The two companies have been involved in discussions about the future of their partnership. OpenAI is exploring the possibility of a public campaign and further regulatory scrutiny to address the perceived inequities in their arrangement.
However, representatives from both organizations have expressed optimism, stating, “Talks are ongoing and we are optimistic we will continue to build together for years to come,” according to a joint statement provided to the Wall Street Journal.
Related story: OpenAI Strikes Unlikely Cloud Partnership with Google Amid Ongoing AI Competition, Sources Reveal
Partnership Negotiations in Limbo
One of the main points of contention between the companies is OpenAI’s ongoing transition to a public-benefit corporation, which requires Microsoft’s approval.
Despite months of negotiations, the two have failed to reach an agreement on the specifics of this transition, sources revealed. The talks reportedly center around restructuring Microsoft’s investment in OpenAI, particularly concerning the future equity stake Microsoft would hold in the AI company.
OpenAI has proposed that Microsoft take a 33% stake in a reorganized unit in exchange for relinquishing its rights to future profits.
This was reported by The Information, citing an individual familiar with the discussions. Additionally, OpenAI seeks to amend the clauses that grant Microsoft exclusive rights to host OpenAI’s models on its cloud platform.
However, Microsoft has not agreed to these proposed changes. Instead, the tech giant is said to be asking for further concessions from OpenAI before agreeing to any modifications to their existing terms.
Both companies have declined to comment on the reports from the Wall Street Journal and The Information.
Microsoft’s initial investment in OpenAI dates back to 2019, when it committed $1 billion to support the development of AI technologies on its Azure cloud platform.
Since then, OpenAI has been increasingly looking for ways to reduce its dependency on Microsoft.
In line with this, the company is reportedly planning to integrate Alphabet’s Google Cloud service to fulfill its expanding computing needs, according to a Reuters report earlier this month.
Read next: Nvidia’s Call for Sovereign AI Gains Ground Across the EU
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