OpenAI and Microsoft Corporation (NASDAQ:MSFT) are reportedly in a dispute over a contractual clause regarding access to Artificial General Intelligence (AGI).
What Happened: The two companies are at odds over a provision in their partnership agreement that would limit Microsoft's access to AGI once OpenAI achieves it, reported Reuters (via The Information).
Microsoft has requested that OpenAI remove the clause, but the company has reportedly refused.
In response to the ongoing talks, both companies gave a joint statement to the publication, saying, “We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing and we are optimistic we will continue to build together for years to come.”
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Why It’s Important: Previously, during a New York Times podcast interview, OpenAI CEO Sam Altman addressed rumors of tension with Microsoft, confirming the tech giant remains supportive and that he had a "super nice call" with Satya Nadella.
While he acknowledged some friction, he said that the partnership has been mutually beneficial.
Last month, it was reported that OpenAI plans to reduce the share of revenue it pays to Microsoft from 20% to 10% by 2030, according to internal financial projections shared with investors.
Earlier this month, OpenAI also confirmed that its annualized revenue run rate has doubled to $10 billion, up from $5.5 billion at the end of 2024. This figure excludes Microsoft licensing and large one-time deals, focusing on recurring revenue.
ChatGPT now has 500 million weekly active users as of March.
Benzinga's Edge Stock Rankings show a positive outlook for Microsoft over the short, medium and long term. Additional detailed metrics are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
