How 'discounts' on ChatGPT software may be straining OpenAI's ties with Microsoft
OpenAI
is offering significant discounts on its enterprise version of ChatGPT, a move that has created tension with its major backer, Microsoft, a report has claimed. These discounts, typically ranging from 10% to 20%, are being offered to clients who sign multi-year contracts and bundle multiple OpenAI services, such as its API, the Deep Research agent, or the Codex coding assistant.
The report says that the discounts may put OpenAI in direct competition with Microsoft's own offerings, particularly its
Azure OpenAI Service
, which allows businesses to access OpenAI's models through Microsoft's cloud infrastructure. This potential overlap may be the source of the friction between the two AI powerhouses.
The strategy appears to be a direct bid to increase overall revenue and customer lock-in across OpenAI's diverse product portfolio. Notably, OpenAI is said to be eying expanding its customer base and achieving a target of $15 billion in ChatGPT-related enterprise revenue by 2030.
As of earlier this year, OpenAI boasted $100 million in revenue from
ChatGPT Enterprise
and reported over three million paying business subscribers across its various ChatGPT plans. However, these discounted offerings are directly competing with Microsoft's sales teams, particularly for its
Copilot AI services
, reportedly leading to increased tension in their partnership.
OpenAI's $3 billion acquisition has escalated tensions with Microsoft: Report
According to a report by The Wall Street Journal, both companies are reportedly entangled in their most significant dispute to date, centred on OpenAI's recent $3 billion acquisition of coding firm Windsurf. It also said that tensions have escalated to the point where OpenAI executives have discussed filing antitrust complaints against Microsoft.
The core of the disagreement lies in Microsoft's existing access to all of OpenAI's intellectual property under their current partnership agreement. OpenAI is now seeking to block Microsoft from accessing Windsurf's technology, particularly given that Microsoft offers its own competing AI coding product, GitHub Copilot.
This acquisition has seemingly deepened existing cracks in their relationship, the report noted, adding that the increasing conflict has prompted some OpenAI executives to internally deliberate accusations of anticompetitive practices against Microsoft.
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