Trouble is brewing between OpenAI and Microsoft

Relations between ChatGPT maker OpenAI and one of its largest investors, Microsoft, are showing signs of trouble as CEOs of the two companies disagree on finances.

Last fall, OpenAI CEO Sam Altman asked Microsoft for more money in addition to the $13 billion investment the tech giant has made in the AI startup. Microsoft CEO Satya Nadella initially agreed but later hesitated after Altman was briefly ousted from the AI startup.

OpenAI, which is losing $5 billion this year, continued asking for more funding and computer power, leading to tensions between the two companies, which have based their collaboration solely on AI technology.

Altman has sought to reduce its dependency on Microsoft by negotiating with other companies, such as Oracle and Nvidia, for computing power.

It closed the largest venture capital funding round earlier this month, led by Thrive Capital, which invested $1.25 billion. Additionally, it had reportedly signed a $10 billion deal with Oracle and secured $6.6 billion in funding from Thrive and Nvidia in June.

However, OpenAI employees complain that Microsoft isn’t providing enough computing power, which may hinder their progress.