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

The love-hate relationship between OpenAI and Microsoft may be heading toward a permanent dissolution, according to a new report by the Wall Street Journal. That raises questions about the future of Microsoft's AI assistant,

At the heart of the dispute is OpenAI's desire to restructure to a for-profit business, a move that requires Microsoft's approval.

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Microsoft, a major investor since 2019, supports OpenAI through Azure and powers tools like Microsoft 365 Copilot with its models. However, tensions between OpenAI and Microsoft have been simmering in recent months, with occasional public clashes.

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.

OpenAI executives have considered accusing Microsoft, the company's major backer, of anticompetitive behavior in their partnership, the Wall Street Journal reported on Monday, citing people familiar with the matter. Julian Satterthwaite reports. EXCLUSIVE: Guardiola dreams of World Cup glory but has no plans to leave City

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