TECH NEWS – OpenAI is becoming increasingly assertive against Microsoft, which has invested heavily in the Sam Altman–led company.

OpenAI is not only taking a stronger stance against Microsoft—even as it expands into traditional Palantir territory—but also preparing to spark another major AI craze this summer with the launch of GPT-5. OpenAI has a unique organizational structure: the nonprofit arm retains operational control over the for-profit arm. The AI-focused startup created a creative investment arrangement with Microsoft, with Microsoft providing $13 billion in funding in exchange for a 49% share of OpenAI’s future profits (on a cumulative basis). Microsoft also receives 20% of OpenAI’s revenues and retains the right to use its intellectual property until 2030.

Now, OpenAI is demonstrating renewed confidence by pressuring Microsoft to renegotiate the terms of their partnership. Specifically, OpenAI wants Microsoft to accept a 33% stake in its for-profit division, relinquishing claims to the startup’s revenue, future profits, and IP. If the restructuring happens, it would pave the way for OpenAI to go public. OpenAI is also reportedly offering enterprise AI product bundles at a discount to undercut Microsoft, with customers who buy additional products getting 10-20% off ChatGPT Enterprise.

This is happening as xAI—one of OpenAI’s chief rivals—is reportedly losing $1 billion a month, trying to raise $9.3 billion in fresh funding, and expecting only $500 million in revenue for the year. Meanwhile, the U.S. Chief Digital and Artificial Intelligence Officer (CDAO) has awarded OpenAI a $200 million, one-year contract for AI solution prototypes. As William Blair analyst Louie DiPalma noted, this is OpenAI’s first significant Department of Defense contract, a field Palantir had previously dominated. Palantir’s largest contract, the Maven Smart System program, has an annual recurring revenue of just $210 million.

Sam Altman, OpenAI CEO, announced on the company’s first podcast that GPT-5 is coming this summer, though even he doesn’t know the exact date. The company is on a roll.

Source: WCCFTech, The Information, Street Insider, OpenAI