OpenAI-Microsoft Alliance Fractures as AI Titans Chart Separate Paths

The once-celebrated partnership between OpenAI's Sam Altman and Microsoft's Satya Nadella is deteriorating amid fundamental disagreements over computing resources, model access, and AI capabilities, according to WSJ. The relationship that Altman once called "the best partnership in tech" has grown strained as both companies prepare for independent futures. Tensions center on several critical areas: Microsoft's provision of computing power, OpenAI's willingness to share model access, and conflicting views on achieving humanlike intelligence. Altman has expressed confidence OpenAI can build models with humanlike intelligence soon -- a milestone Nadella publicly dismissed as "nonsensical benchmark hacking" during a February podcast. The companies retain significant leverage over each other. Microsoft can block OpenAI's conversion to a for-profit entity, potentially costing the startup billions if not completed this year. Meanwhile, OpenAI's board can trigger contract clauses preventing Microsoft from accessing its most advanced technology. After Altman's brief ouster in 2023 -- dubbed "the blip" within OpenAI -- Nadella pursued an "insurance policy" by hiring DeepMind co-founder Mustafa Suleyman for $650 million to develop competing models. The personal relationship has also cooled, with the executives now communicating primarily through scheduled weekly calls rather than frequent text exchanges. Read more of this story at Slashdot.

Apr 29, 2025 - 12:10

OpenAI-Microsoft Alliance Fractures as AI Titans Chart Separate Paths

The once-celebrated partnership between OpenAI's Sam Altman and Microsoft's Satya Nadella is deteriorating amid fundamental disagreements over computing resources, model access, and AI capabilities, according to WSJ. The relationship that Altman once called "the best partnership in tech" has grown strained as both companies prepare for independent futures. Tensions center on several critical areas: Microsoft's provision of computing power, OpenAI's willingness to share model access, and conflicting views on achieving humanlike intelligence. Altman has expressed confidence OpenAI can build models with humanlike intelligence soon -- a milestone Nadella publicly dismissed as "nonsensical benchmark hacking" during a February podcast. The companies retain significant leverage over each other. Microsoft can block OpenAI's conversion to a for-profit entity, potentially costing the startup billions if not completed this year. Meanwhile, OpenAI's board can trigger contract clauses preventing Microsoft from accessing its most advanced technology. After Altman's brief ouster in 2023 -- dubbed "the blip" within OpenAI -- Nadella pursued an "insurance policy" by hiring DeepMind co-founder Mustafa Suleyman for $650 million to develop competing models. The personal relationship has also cooled, with the executives now communicating primarily through scheduled weekly calls rather than frequent text exchanges.