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Cracks emerge in Microsoft-OpenAI partnership as rivalries and investments shift

Article by Gadjo Sevilla  |  Oct 18, 2024
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Cracks emerge in Microsoft-OpenAI partnership as rivalries and investments shift
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Technology
Business Strategies & Trends
United States

The news: The multibillion-dollar partnership between OpenAI and Microsoft is showing signs of strain—the AI startup is trying to raise more money while Microsoft is hedging its bets by looking to diversify investments, per The New York Times.

  • OpenAI CEO Sam Altman reportedly asked for more money from Microsoft for the nonprofit that is realigning its mission to be a for-profit enterprise. It recently gained $6.6 billion in investments.
  • Microsoft spent $650 million to hire most of Inflection AI’s staff and installed its CEO and co-founder Mustafa Suleyman to run its AI division. The move caused some friction between Suleyman and his OpenAI counterparts. 

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