Microsoft’s relationship with OpenAI has a complex history, with the tech giant reportedly investing $13 billion in the ChatGPT maker as part of a long-term partnership. This partnership involves Microsoft utilizing OpenAI’s models in its enterprise and consumer products, with Microsoft also serving as OpenAI’s exclusive cloud provider.
However, for the first time, Microsoft referred to OpenAI as a “competitor” in an SEC filing released on Tuesday.
In Microsoft’s annual 10K report, OpenAI was listed among a group of competitors in AI, including Anthropic, Amazon, and Meta. Additionally, OpenAI was categorized as a competitor to Microsoft in search, alongside Google, due to OpenAI’s introduction of the SearchGPT feature.
The change in language regarding OpenAI’s status as a competitor may be an attempt by Microsoft to address antitrust concerns, as the FTC is currently investigating similar cloud provider investments in AI startups. Microsoft recently gave up its board observer seat at OpenAI, which it had obtained following a previous incident involving the CEO.
While partnerships and competition can coexist in Silicon Valley, Microsoft is diversifying its AI efforts by hiring the co-founders of Inflection AI to lead its new Microsoft AI division. The company is heavily investing in Microsoft Copilot and expanding its AI initiatives independent of OpenAI.
