OpenAI seeks to loosen Microsoft ties, eyes antitrust complaint

OpenAI has considered launching a formal complaint against Microsoft—its largest investor over what it views as potentially anticompetitive terms in their partnership, Wall Street Journal reported. As per the media report, OpenAI may seek regulatory scrutiny of its existing contract with Microsoft and even go public with its concerns if talks fail to yield agreement.

At the heart of the dispute is a broader struggle for autonomy and control as OpenAI transitions into a public-benefit corporation, an evolution that reportedly requires Microsoft’s approval.

The tension reflects growing discomfort over contractual clauses that grant Microsoft significant leverage, including exclusive hosting rights for OpenAI’s models on its Azure cloud. OpenAI is now seeking to renegotiate those terms, proposing a revised structure in which Microsoft would take a 33% equity stake in a new unit, in exchange for waiving rights to future profits.

However, Microsoft is reportedly pushing back, asking for additional concessions. The outcome of these negotiations could reshape the balance of power in the AI landscape.

While both companies maintain a public front of cooperation stating they are “optimistic we will continue to build together for years to come” behind the scenes, the relationship appears to be shifting from symbiotic to strained. Adding to the complexity, OpenAI has reportedly begun diversifying its cloud infrastructure by tapping Google Cloud, signaling a desire to reduce its dependency on Microsoft’s Azure.

This move undercuts one of the key strategic advantages Microsoft has enjoyed since its initial $1 billion investment in 2019, which made Azure the backbone of OpenAI’s rapid rise.

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