OpenAI-Microsoft Rift Centers on Windsurf, Profit Rights

Tensions between OpenAI and Microsoft have escalated following OpenAI's $3 billion acquisition of coding startup Windsurf, which has become central to disputes over intellectual property access and competition with Microsoft's GitHub Copilot. OpenAI is considering accusing Microsoft of anticompetitive practices and may seek a federal regulatory review. In an effort to restructure its for-profit unit, OpenAI is offering Microsoft a 33% stake in exchange for Microsoft giving up rights to future profits, though this requires Microsoft's consent. Both companies have acknowledged ongoing negotiations and expressed optimism about resolving their disagreements. OpenAI is also working to decrease its reliance on Microsoft cloud services, exploring alternatives like Google Cloud. The outcome of these negotiations could significantly impact one of the AI sector's most important alliances.