OpenAI-Microsoft tensions escalate over control and contracts

The relationship between OpenAI and Microsoft is under growing strain amid extended talks over OpenAI’s restructuring, with OpenAI reportedly considering antitrust action over Microsoft’s influence in the partnership.

OpenAI leaders have considered alleging that Microsoft engaged in anticompetitive practices during their collaboration, a move that could prompt a federal investigation, WSJ reported.The ChatGPT maker is reportedly exploring the option of urging regulators to examine its contractual relationship with Microsoft, along with a public campaign.

Meanwhile, The Information reported that OpenAI is seeking to give Microsoft a roughly 33% stake in its reorganized for-profit unit in exchange for relinquishing rights to future profits.

OpenAI also wants to revise existing contract clauses that grant Microsoft exclusive cloud hosting rights and to exclude its planned $3 billion acquisition of AI startup Windsurf from terms that give Microsoft access to OpenAI’s intellectual property, the report added.

These developments threaten to disrupt one of the most closely watched alliances in the AI sector.

A potential antitrust complaint by OpenAI could heighten regulatory scrutiny of major AI-cloud partnerships and lead enterprise customers to reevaluate risks tied to vendor lock-in and control over core infrastructure.

Microsoft, a major investor since 2019, supports OpenAI through Azure and powers tools like Microsoft 365 Copilot with its models.However, tensions between OpenAI and Microsoft have been simmering in recent months, with occasional public clashes.

OpenAI has also been trying to reduce its dependence on Microsoft by turning to Google Cloud for additional computing power, while Microsoft has been working to lessen its own reliance on OpenAI by integrating alternative AI models into its Copilot platform, according to Reuters.

Impact on enterprises

A potential regulatory review may weaken enterprise confidence in adopting or expanding the use of Copilot and related tools, particularly in heavily regulated sectors such as healthcare and financial services.

“Over the short to long term, enterprises could face service disruptions, compatibility issues, or increased costs as vendors adjust their business models in response to changes in the partnership or service offerings,” said Prabhu Ram, VP of the industry research group at CyberMedia Research.

OpenAI models currently power Microsoft Copilot. But with growing innovation from rivals like DeepSeek, both firms appear to be preparing for a more independent path.

“The rate at which AI is advancing, especially given what DeepSeek has demonstrated, suggests that being locked into a single model is no longer a prudent strategy for Microsoft,” said Neil Shah, VP of research and partner at Counterpoint Research. “Enterprises will need to prepare for AI tools and platforms that are diverse in capability, modular, and scalable.”

For OpenAI, partnerships with Oracle Cloud and potentially Google Cloud will help scale its models further in enterprise deployments, particularly in the public sector, where Google is working to expand its presence.

“In the end, most cloud and AI providers will need to support multiple models and adopt modular integration to give enterprises more choice,” Shah said. “This way, they avoid becoming a one-trick pony and can select models based on their strengths, future development roadmaps, and alignment with specific use cases.”