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

The Information report said OpenAI still requires Microsoft's approval to move forward with the restructuring, which would convert the unit into a public-benefit corporation. The

Microsoft’s backing since 2019 has been central to its rapid rise in generative AI, but now, as OpenAI negotiates to secure more control over its future, the talks have reportedly turned tense.

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

Microsoft (NASDAQ:MSFT) shares edged down 0.7% in Tuesday morning trading as tensions with OpenAI intensified, with disagreements over their partnership structure threatening to derail future collaboration.

Altman's outfit considers going nuclear  Tensions are bubbling up between OpenAI and its deep-pocketed backer Microsoft as they start scrapping over control, competition, and how much cash is on the table.

Before OpenAI can go public via an IPO, it needs to come to an agreement with Microsoft about what Microsoft’s investment will be worth. Both companies are very different today than when that investment was made. OpenAI is now a big and successful operation, valued at $300 billion, with arguably the most advanced AI capabilities in the world.

OpenAI's $3 billion acquisition of coding startup Windsurf has reportedly strained its deep partnership with Microsoft (NASDAQ:MSFT) over access to AI intellectual property. According to a Wall Street Journal report,