The Windsurf acquisition and future of Copilot are at the center of a growing rift between the longtime AI collaborators.

Microsoft and OpenAI are engaged in tense negotiations that could unravel one of the most important alliances in AI and fundamentally reorder the industry. Why it matters: Microsoft has injected billions of dollars in OpenAI and made it a cornerstone of its AI strategy,

The Wall Street Journal reports that OpenAI may run to the federal government and accuse Microsoft—its own sugar daddy—of anti-competitive practices. Were this to happen, OpenAI execs claim they would seek a federal regulatory review of the terms of the contract between them and Microsoft,