Frenemies Of The Silicon Valley: Microsoft Now Lists OpenAI As Competitor In AI & Search

Microsoft might be attempting to reshape the perception of its relationship with OpenAI due to antitrust scrutiny.

Microsoft has called OpenAI as a 'competitor' for the first time in an SEC filing on Tuesday.

Source : Unsplash/@Boliviantelegentre, @Levart_Photographer

Microsoft and ChatGPT maker OpenAI joined hands a few months back and the former had even reportedly invested $13 billion in OpenAI as part of a long-term partnership. One would have thought that this partnership would stay solid for a long time but it seems like the relationship has gone toxic. Microsoft has called OpenAI as a “competitor” for the first time in an SEC filing on Tuesday.

In Microsoft's annual 10K report, OpenAI was mentioned among a lengthy list of AI competitors, including Anthropic, Amazon, and Meta. Additionally, OpenAI was identified as a competitor to Microsoft in the search domain due to the recent announcement of its SearchGPT feature, placing it alongside Google.

Is Microsoft Trying To Play The Competitor Narrative To Avoid Fire From Antitrust Bodies?

Microsoft might be attempting to reshape the perception of its relationship with OpenAI due to antitrust scrutiny. The FTC is currently investigating this relationship along with other cloud providers' investments in AI startups.

Recently, Microsoft agreed to relinquish its board observer seat at OpenAI, a position it acquired following last fall's incident when OpenAI's board temporarily dismissed CEO Sam Altman, leading Microsoft CEO Satya Nadella to extend job offers to Altman and other top executives.

Another Google V. Yahoo Incoming?

Back in the year 2000, a similar scenario was observed with the case of Yahoo and Google. Yahoo was the dominant search engine back in the 2000s and it had announced an agreement to allow Google’s search results to appear on its web page.

The two companies stayed as partners for a few years then Google started to eat Yahoo's search authority and soon became the doorstep to the internet. Initially, they were partners but soon they became threats to each other. If history is to be taken seriously then it is highly possible that OpenAI and Microsoft will soon become threats for each other.