Microsoft and OpenAI are now official competitors as Microsft openly lists OpenAI as competitors in its yearly report. OpenAI now joins Microsoft’s lists of competitors including Google, Amazon, Meta and Apple.

This move by Microsoft has blindsided many as the relationship between the two leading tech companies was generally positive and mutually beneficial. However, this move by Microsoft may or may not complicate their partnership.

Microsoft and OpenAI- Current State of their Partnership

As per reports, Microsft has invested over $13 billion in OpenAI to become its only cloud service provider. Furthermore, Microsoft has even integrated OpenAI’s AI technology into its products. However, Microsoft has been pushing itself into the AI market with its products. The tech company has several AI services such as its AI chatbot Copilot and Microsoft Azure AI.

Despite the open listing, OpenAI has assured that Microsft will remain a partner. A spokesperson from OpenAI has further stated that competition between the two companies has always been recognised but their partnership has not been affected.

2024 has not been the best year for Microsoft and OpenAI’s relationship as Microsoft withdrew a board seat at OpenAI, following the reinstatement of Sam Altman, OpenAI’s CEO. There are also rumours circulating about internal competition between the two companies, such as Microsoft’s CEO hiring a member from DeepMind’s AI team. This member was none other than Mustafa Suleyman, co-founder of Deepmind.

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