• OpenAI's Antitrust Complaint Against Microsoft: OpenAI executives have discussed filing an antitrust complaint with US regulators against Microsoft, its largest investor. They have considered seeking a federal regulatory review of the contract terms with Microsoft for potential antitrust law violations. The potential complaint argues that Microsoft is using its cloud service and contractual leverage to suppress competition.
• Long-Term AI Partnership Tensions: This marks a significant escalation in tensions between the two long-term AI partners. The friction centers around OpenAI's efforts to transition from a nonprofit structure to a public benefit corporation, which requires Microsoft's approval. The two companies have not been able to agree on details after months of negotiations.
• Revising Microsoft's Investment Terms: The companies are discussing revising the terms of Microsoft's investment, including the future equity stake. OpenAI wants Microsoft to hold a 33% stake in a restructured unit in exchange for foregoing rights to future profits. It also wants to modify existing clauses giving Microsoft exclusive rights to host OpenAI models.
• Criticism and Other Developments: Elon Musk alleges that OpenAI violated contract provisions and has sued to block the conversion. Meta Platforms also asked California's attorney general to block OpenAI's conversion. Last year, the US Federal Trade Commission began examining the Microsoft-OpenAI partnership. Microsoft is no longer OpenAI's exclusive cloud provider as of January, and OpenAI plans to add Google Cloud service. Meanwhile, Microsoft and OpenAI have maintained a public front of cooperation.