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OpenAI ‘Considers’ Making Antitrust Allegations Against Microsoft
- OpenAI executives have reportedly considered leveraging antitrust accusations against Microsoft to loosen the firm's control under their six-year investment deal, which includes seeking a federal regulatory review and conducting a public campaign.
- The disagreement stemmed from Microsoft's access to all of OpenAI's intellectual property, including that of the acquired coding start-up Windsurf, which OpenAI aims to keep separate to enhance its coding offerings competing with Microsoft's GitHub Copilot.
- Microsoft's investments in OpenAI total over $10 billion, and OpenAI requires Microsoft's approval to transition into a public benefit corporation, with more than $20 billion in funding depending on the conversion by year-end.
- Microsoft allowed OpenAI to initiate the Stargate data center project, despite an obligation for Microsoft to be the sole cloud provider under their agreement, while also expanding its AI offerings independently.
- OpenAI seeks to offer its products through other cloud providers like Google Cloud, leading to conflicts with Microsoft, known for hiring talent to strengthen its AI projects in competition with OpenAI.
- OpenAI's plans to broaden its cloud provider reach have led to disputes with Microsoft over ownership proportions post-public-benefit conversion, with Microsoft and OpenAI negotiating crucial terms amid regulatory examinations.
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