$3 billion acquisition that has triggered all-time high tension between Microsoft and ChatGPT-maker OpenAI
and Microsoft are locked in their most heated dispute yet over the AI startup's $3 billion acquisition of coding company Windsurf, with tensions escalating to the point where OpenAI executives have discussed filing
antitrust complaints
against their longtime partner, according to sources familiar with the matter.
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The standoff centers on Microsoft's current access to all of OpenAI's intellectual property under their existing agreement. OpenAI wants to block Microsoft from accessing Windsurf's technology, particularly as Microsoft offers its own competing AI coding product,
GitHub Copilot
, the Wall Street Journal reported.
Partnership at breaking point as conversion deadline looms
The dispute has grown so intense that OpenAI has considered what insiders describe as a "nuclear option" – accusing Microsoft of anticompetitive behavior and seeking federal regulatory review of their contract terms.
Such a move would threaten to unravel one of tech's most celebrated partnerships.
The companies are simultaneously battling over OpenAI's conversion to a for-profit structure, which must be completed by year-end or the startup risks losing $20 billion in funding. Microsoft is demanding a larger ownership stake in the converted company than OpenAI is willing to provide.
Under their current deal, Microsoft has exclusive rights to sell OpenAI's software through its Azure cloud platform and serves as the company's primary compute provider.
OpenAI now wants to partner with other cloud providers to expand its customer base and access additional computing resources.
The relationship has grown increasingly strained as both companies have evolved from partners into direct competitors across consumer chatbots and business AI tools. Last year, Microsoft CEO
even hired a rival of OpenAI CEO
to secretly develop competing AI models.
Despite the tensions, both companies issued a joint statement calling their partnership "long-term" and "productive," saying talks remain ongoing and expressing optimism about continuing to "build together for years to come."
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