EXECUTIVES at OpenAI have discussed accusing the company’s major backer, Microsoft, of anticompetitive behaviour during their partnership, the Wall Street Journal reported on Monday, citing people familiar with the matter.
OpenAI’s effort could involve seeking a federal regulatory review of the terms of its contract with Microsoft for potential violations of antitrust law, as well as a public campaign, the report said.
Such a move could unravel one of the most pivotal tech partnerships in the fast-growing field of artificial intelligence.
OpenAI needs Microsoft’s approval to complete its transition into a public-benefit corporation. But the two have not been able to agree on details even after months of negotiations, sources said.
The companies are discussing revising the terms of Microsoft’s investment, including the future equity stake it will hold in OpenAI, according to the sources.
“Talks are ongoing and we are optimistic we will continue to build together for years to come,” representatives for the two companies told the WSJ in a joint statement. They did not immediately respond to Reuters requests for comment.
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Microsoft invested US$1 billion in OpenAI in 2019 to support the startup’s development of AI technologies on its Azure cloud platform. The early bet gave it a front-row seat in the AI race and helped propel both companies to the forefront of the industry.
Since then, however, OpenAI has been looking for ways to reduce its reliance on the tech heavyweight. The company plans to add Alphabet’s Google Cloud service to meet its growing needs for computing capacity, Reuters reported earlier this month.
Microsoft has also been laying the groundwork for greater independence. It has been working on adding internal and third-party AI models to power its flagship AI product, Microsoft 365 Copilot, which relies heavily on OpenAI, Reuters reported last year.
Previous regulatory concerns have already prompted Microsoft to make concessions. Last year, it gave up its board observer seat at OpenAI to address antitrust scrutiny in the US and the UK over its influence on the startup. REUTERS
