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Microsoft is ‘angry’ with OpenAI for ChatGPT discount offers: Report
Microsoft reportedly isn’t too keen on OpenAI offering discounts on its enterprise-grade solutions
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Microsoft has been OpenAI's key investor, having invested billions in the AI giant over the years. However, according to a report by The Information, this relationship is starting to get rocky.
This comes as OpenAI is offering major discounts on the enterprise version of its AI, including ChatGPT subscriptions. These discounts range between 10 to 20%, bundling various OpenAI tools. This is what has made Microsoft unhappy, considering it mostly does not offer discounts on services intended for enterprise users.
The report also adds that Microsoft has reportedly lost out on various deals because it was unable to match the pricing that OpenAI had to offer to enterprise buyers.
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Once a backer, now a rival
The conflict is not limited to this. Recently, The Wall Street Journal reported that the tension between the two companies has been rising as they are now seen as rivals. The publication reported that OpenAI wants to reduce Microsoft's control over its AI products and computing resources and ultimately transition into a for-profit company.
The report adds that negotiations have been in place over the last few weeks, but things are now so strained that OpenAI executives have reportedly discussed accusing Microsoft of anti-competitive behaviour over their partnership. This could go as far as involving a federal regulatory review of the terms and conditions of Microsoft and OpenAI's contract and a potential violation of antitrust law.
Microsoft and OpenAI’s brief history
Microsoft and OpenAI have a long history. For those uninitiated, Microsoft has been an investor in OpenAI. It all started in 2019 when the company invested $1 billion. Over the years, Microsoft has invested a lot more, including a recent $13-billion investment in 2024.
The relationship between Sam Altman and Microsoft CEO Satya Nadella has also been quite good, and it reached an all-time high when Microsoft offered Sam Altman the CEO position of a parallel AI company when OpenAI's board made Sam Altman exit over a year and a half ago.
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