OpenAI, Microsoft partnership is in trouble amid rising tensions

The six-year relationship between OpenAI and Microsoft appears strained as tensions escalate over control of their AI partnership, according to the Wall Street Journal.

OpenAI seeks to loosen Microsoft’s exclusive grip on its AI models and computing resources as it pushes to convert into a for-profit company and raises fresh capital. 

Microsoft’s approval is crucial for the conversion, which must take place by year-end, or OpenAI could lose $20 billion in potential funding.

Talks have stalled. OpenAI has considered accusing Microsoft of anticompetitive behavior, possibly triggering federal antitrust scrutiny. 

The dispute also involves OpenAI’s $3 billion acquisition of coding startup Windsurf, whose IP it wants to protect from Microsoft. 

Microsoft, meanwhile, demands greater ownership in OpenAI’s future structure and continued access to its models—even those reaching human-level intelligence.

Both firms say discussions are ongoing and remain optimistic. However, growing competition between the two is complicating matters.