Microsoft and OpenAI are reportedly in conflict over a contract clause stating that Microsoft would lose access to OpenAI’s technology upon the achievement of Artificial General Intelligence (AGI). Microsoft wants the clause removed, but OpenAI has refused. Despite this, both companies stated they remain optimistic about continuing their partnership, which has produced major AI tools. The disagreement arises as OpenAI seeks Microsoft’s approval to become a public-benefit corporation — a process stalled by unresolved issues. Microsoft first partnered with OpenAI in 2019, investing $1 billion to support AI development on its Azure cloud platform. Negotiations between the two are ongoing.