Microsoft's dollars and computing power have allowed OpenAI to become a leader in the AI sector. In return, the Windows maker can tap into the startup's technologies to power its applications and services. But relations are difficult between the two partners, reports the Wall Street Journal.
AI standoff
One of the stumbling blocks is access to the intellectual property of Windsurf, a startup specializing in programming assistance tools that was acquired by OpenAI in early May. Microsoft, which is developing a competing tool (GitHub Copilot), would like to gain access to Windsurf's technologies, but is reportedly facing refusal from OpenAI. The creator of ChatGPT is developing tools that increasingly rival those of his investor in the chatbot field, of course, but also for businesses.
Another disagreement concerns the conversion of OpenAI into a "public-benefit corporation" (PBC), a new legal entity that would allow the company to welcome more investors, while remaining controlled by a non-profit organization. Time is running out: OpenAI must complete this transition by the end of the year, or risk losing $20 billion in conditional investments.
This restructuring is not the one initially envisaged for the end of 2023, which aimed to place all of OpenAI under a for-profit entity. This project was abandoned, but a slimmed-down version, focused on the commercial subsidiary, remains on the table.
Microsoft would like a larger share of this PBC, but OpenAI has no intention of ceding so much power, especially over valuable assets like Windsurf. OpenAI is also looking to work with cloud providers other than Azure, which has exclusive rights to resell the company's AI tools.
One point in the contract between the two companies is also hotly debated: the partnership will end once OpenAI's AI models reach AGI, or artificial general intelligence, which is supposed to be as powerful as human intelligence. Some experts predict AGI for tomorrow, others believe it will never happen. Either way, Microsoft doesn't want to lose everything if OpenAI succeeds.
To twist Microsoft's arm, OpenAI is reportedly considering a nuclear option: asking the US regulator to take a look at the terms of the contract to flush out possible antitrust violations. Enough to permanently sour relations between the two companies!
Source: WSJ
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