The contract could put the model maker in competition with the OpenAI services that Microsoft wants to sell to the DoD.

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,

The potential antitrust complaint would likely argue that Microsoft is using its dominant position in cloud services and contractual leverage to suppress competition, according to insiders who described it as a "nuclear option,

Negotiations between Microsoft and OpenAI over the startup’s plan to restructure its for-profit unit, which requires Microsoft’s approval, have entered their eighth month with no end in sight and new conflicts emerging.

CNBC’s Deirdre Bosa reports on the growing rift between Microsoft and OpenAI. Canadian Indigenous leader says he was 'filled with rage' before 'intense' conversation with Trump

OpenAI reportedly considered legal action against Microsoft amid disputes over profit-sharing, equity, and exclusive cloud hosting rights.

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 relationship between OpenAI and Microsoft Corporation (NASDAQ: MSFT) is becoming increasingly strained, with OpenAI reportedly contemplating a drastic move in the ongoing negotiations.