Market & Regulation
Microsoft's Early Doubts on OpenAI Partnership Revealed
WIRED AIhigh confidence
Why it matters
- →Reveals Microsoft's initial skepticism about OpenAI's potential for AI breakthroughs.
- →Highlights strategic risks Microsoft considered in its partnership with OpenAI.
- →Shows how early doubts evolved into a successful $1 billion investment.
Internal emails from Microsoft executives, revealed during the Musk v. Altman trial, show the company's early doubts about investing in OpenAI. In 2017, Microsoft executives were skeptical about OpenAI's potential for significant AI breakthroughs and were concerned about the financial implications of providing extensive cloud services. Despite these reservations, Microsoft eventually invested $1 billion in OpenAI in 2019, leading to a successful partnership. The emails underscore the strategic risks Microsoft considered, including the possibility of OpenAI partnering with competitors like Amazon.
Read originalThe story around this
Earlier coverage that leads up to this article, and what followed. Lines connect each piece to the closest one after it, converging here.
How we got here
- 1OpenAI and Microsoft revise partnership terms
The Rundown AI · April 28, 2026 · Related
- 2Elon Musk's $130B Trial Against OpenAI Begins
The Rundown AI · April 29, 2026 · Background
- 3Microsoft and OpenAI Adjust Partnership Terms
The AI Daily Brief · April 29, 2026 · Background
- 4Big Tech's AI Infrastructure Spending Yields Returns
AI News · April 30, 2026 · Background
- 5Microsoft and OpenAI Update Partnership Agreement
The Verge AI · April 30, 2026 · Background
- 6Elon Musk Sues OpenAI Over Mission Shift
Matt Wolfe · May 1, 2026 · Background
- 7Greg Brockman Defends OpenAI Stake Amid Musk Trial
WIRED AI · May 4, 2026 · Related
- 8Mira Murati Testifies Against Sam Altman in Court
The Verge AI · May 6, 2026 · Background
What happened next
- 9Musk v. OpenAI: Trial Reveals Internal Conflicts
MIT Technology Review AI · May 8, 2026 · Related
- 10Musk v. Altman Trial Concludes with OpenAI Verdict
MIT Technology Review AI · May 15, 2026 · Related
- 11OpenAI Plans IPO Amidst Competitive Landscape
TechCrunch AI · May 20, 2026 · Related
- 12Microsoft's Anthropic Investment Yields $3.2B Gain
TechCrunch AI · July 29, 2026 · Related
- 13OpenAI Ends Partnership with Cursor Amid Musk Concerns
WIRED AI · September 3, 2026 · Related
Follow this story
Open the full story →Microsoft's Early Doubts on OpenAI Partnership Revealed
2 developments
- May 8 · WIRED AI
Microsoft's Early Doubts on OpenAI Partnership Revealed (This article) - May 8 · The Verge AI
Microsoft Feared OpenAI's Shift to Amazon↳ Court documents show Microsoft feared losing OpenAI to Amazon in 2017, prompting a $1 billion investment to secure Azure's reputation.
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