US media: OpenAI and Microsoft's partnership is in jeopardy

PANews June 17 news, according to the Wall Street Journal, OpenAI and Microsoft (MSFT.O) are increasingly at loggerheads over the future of their AI partnership. The startup is trying to get rid of Microsoft's control over its AI products and computing resources, and to win the support of the tech giant to transform into a for-profit company. Microsoft's approval is crucial to whether OpenAI can raise more funds and go public. But people familiar with the matter said that the negotiations were so difficult that in recent weeks, OpenAI executives discussed an option they considered to be a key option: accusing Microsoft of anti-competitive behavior during the cooperation. This may include asking federal regulators to review whether the terms of the contract violate antitrust laws, while launching a public opinion offensive. This move may jeopardize the six-year partnership between the two parties. People familiar with the matter said that Microsoft and OpenAI have reached a deadlock in negotiations on equity in the startup company after the transformation of the tech giant. Microsoft's required shareholding ratio in the new company far exceeds the share that OpenAI is willing to give up. OpenAI must complete the transformation by the end of the year, otherwise it may face the risk of $20 billion in financing going out of business.