In a shift, Microsoft has officially listed OpenAI as a competitor in its latest SEC filing. As the two giants roll out increasingly overlapping products—from ChatGPT versus CoPilot to Bing versus SearchGPT—the dynamics of their relationship seem to be evolving. The addition of a new CEO to Microsoft’s AI division only adds to it.

This might also be seen as a strategic move to placate regulatory concerns from the FTC, which has expressed concerns about the closeness of their partnership. It begs the question: are Microsoft and OpenAI partners, competitors, or perhaps something in between—frenemies?

Microsoft says OpenAI is now a competitor in AI and search

What once was a strategic, long-term partnership between the world’s biggest software company and an AI startup has morphed into something more complicated.