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WSJ: OpenAI-Microsoft Partnership Hits “Boiling Point” as Legal Threats Loom
2 min read OpenAI vs Microsoft is boiling over: WSJ reports OpenAI may file antitrust complaints after clashes on IP, compute, and control. The partnership that built GPT is turning into a power struggle for AI’s future. June 17, 2025 12:41
The Wall Street Journal reports that OpenAI’s once-close partnership with Microsoft has reached a breaking point, with OpenAI now considering antitrust complaints amid intensifying disputes over compute access, IP rights, and corporate control.
The latest flashpoints:
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Windsurf sparks IP war: OpenAI’s $3B acquisition of Windsurf triggered new tensions, as OpenAI wants to withhold key IP to avoid strengthening Microsoft’s competing product, GitHub Copilot.
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The nuclear option: OpenAI is weighing the possibility of accusing Microsoft of anticompetitive behavior, potentially prompting a federal investigation into the partnership.
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Governance clash: Microsoft was reportedly a major holdout during OpenAI’s PBC restructuring, with both sides meeting last month to renegotiate terms.
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Looking elsewhere: OpenAI has started diversifying its cloud dependencies, announcing a partnership with Google Cloud just last week.
Why it matters:
For months, AI’s most important alliance has been silently unraveling. But if OpenAI moves forward with legal action against its biggest investor, it would mark a stunning escalation—turning the partnership that once powered GPT into a high-stakes power struggle over who controls the future of AI as AGI draws closer.
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