Microsoft’s relationship with OpenAI has taken a new turn, with the tech giant now listing OpenAI as a competitor in its latest annual report. For years, Microsoft’s competitor list has included Amazon, Apple, Google, and Meta. Now, OpenAI, a long-term partner and beneficiary of Microsoft’s reported $13 billion investment, joins that roster.
Microsoft serves as OpenAI’s exclusive cloud provider and integrates its AI models into products for commercial clients and consumers. Despite this close partnership, the new designation reflects increasing competition between the two companies.
Microsoft identified OpenAI, the creator of ChatGPT, as a competitor in AI, search, and news advertising, following OpenAI’s recent announcement of a search engine prototype called SearchGPT. Companies can access OpenAI’s models directly or through Microsoft’s Azure OpenAI Service, while Microsoft’s own Copilot chatbot is available via Bing and Windows.
An OpenAI spokesperson told CNBC that the relationship with Microsoft remains unchanged and that competition was expected as part of their partnership. However, recent events have added tension. Microsoft CEO Satya Nadella was reportedly not informed before OpenAI’s board temporarily ousted CEO Sam Altman in November. Though Altman was quickly reinstated, Microsoft gave up a non-voting board seat it had received.
