Accordingly, OpenAI is looking to loosen Microsoft's control over its AI products and computing resources. At the same time, seek approval from the "technology giant" for the plan to convert into a for-profit company. Microsoft's approval of this conversion is a key factor for OpenAI to raise more capital and move towards IPO.
However, the negotiations have become difficult, causing OpenAI's leaders to consider accusing Microsoft of unfair competition during the cooperation period. This move could include calling on the federal agency to review the contract between the two sides to determine whether there is a violation of antitrust law.
If that happens, the six-year relationship between the two "big guys" in the technology industry - considered one of the most successful cooperation in history - could be threatened. Over the years, Microsoft has provided financial support for the rise of OpenAI in exchange for early access to technology. However, now that the two sides have become opponents, finding a common voice has become more difficult.
Currently, OpenAI and Microsoft are competing on a clause in a $30 billion deal that OpenAI wants to "accept" the Windsurf programming startup. Under the current agreement, Microsoft has access to all of OpenAI's intellectual property (IP). Microsoft is also offering its own programming AI product, GitHub Copilot which competes directly with OpenAI. OpenAI does not want Microsoft to have access to Windsurf's IP.
The two sides have yet to agree on how many shares Microsoft will own if OpenAI converts to a public interest company. According to the sources, Microsoft is demanding a larger ownership ratio than OpenAI is willing to transfer.
OpenAI must complete this conversion before the end of this year, otherwise it risks losing 20 billion USD in investment capital.
