Microsoft and OpenAI’s multi-billion-dollar partnership is arguably the best tech “bromance” in history. However, the partnership has undergone a lot of turbulence over the year, from Sam Altman’s abrupt ouster as CEO in 2023 and investor pressure on OpenAI to evolve into a for-profit venture to copyright infringement lawsuits.
Tesla CEO and billionaire Elon Musk is arguably the harshest critic of the Microsoft-OpenAI partnership, which is ironic since he co-founded OpenAI in 2015 and was intimately involved in the company’s affairs until his departure from the board in 2018.
It now appears that the billionaire played a key role in orchestrating OpenAI’s partnership with Microsoft, even urging CEO Sam Altman to strike an agreement with the tech giant back in 2016 (via The Information).
Recently published court documents from the ongoing case between Elon Musk and OpenAI reveal that the billionaire explicitly expressed his preference for Microsoft as a cloud provider, while referring to Amazon CEO Jeff Bezos as a “tool.”
According to an exhibit shared on Court Listener:
“In 2016, Musk expressed a preference for OpenAI to change its cloud services provider from Amazon to Microsoft. Shortly after, Musk helped arrange for Microsoft’s supply of Azure services.”
More recently, OpenAI’s request to have Elon Musk’s lawsuit thrown out was denied by U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, who ruled that it would proceed to a jury trial scheduled for March 2026. “This case is going to trial,” the judge added.
Elon Musk claims that he invested approximately $38 million in OpenAI, understanding it as “charitable contributions.” However, the billionaire has accused the ChatGPT maker of selling a fake humanitarian mission to get money from investors.
As such, the executive is seeking a return of what he refers to as “ill-gotten gains” from OpenAI’s multibillion-dollar partnership with Microsoft, including damages.
This news comes after OpenAI evolved into a for-profit venture after renewing its vows with Microsoft under a new definitive partnership agreement. As OpenAI’s largest backer, Microsoft now holds a 27% stake, which translates to approximately $135 billion in OpenAI’s Public Business Corporation.
Consequently, Microsoft’s close ties with OpenAI have seemingly dragged the company into the corridors of justice, where it is listed as a defendant in Musk’s lawsuit against OpenAI. However, the company has denied having any “knowledge of any alleged duties or breaches by OpenAI, Altman, or Brockman.”
This new lawsuit is the latest chapter in Mr. Musk’s ongoing harassment. We have no tolerance for any breaches of confidentiality, nor any interest in trade secrets from other labs.
OpenAI
Last year, we learned that Microsoft co-founder Bill Gates opposed Satya Nadella’s decision to invest $1 billion in OpenAI in 2019, primarily due to the company’s non-profit structure. “I think Bill even said, ‘Yeah, you’re going to burn this billion dollars,'” Nadella indicated.
Will Microsoft’s partnership with OpenAI stand the test of time? Let me know in the comments and vote in the poll!
Follow Windows Central on Google News to keep our latest news, insights, and features at the top of your feeds!