Microsoft Execs Were Sceptical of OpenAI, Lawsuit Emails Reveal

Internal Microsoft emails from 2018 reveal executives were sceptical of OpenAI's capabilities but deeply concerned about the startup partnering with a rival cloud provider. The communications, surfaced as part of Elon Musk's lawsuit against OpenAI, show leaders at the tech giant weighing the risks of a potential deal. The central fear was that inaction could push OpenAI into the arms of Amazon Web Services.

At the time, Microsoft was considering a significant investment in the AI research lab. The internal debate highlights the strategic calculus involved, balancing doubts about OpenAI's technical promises with the competitive necessity of securing a key AI partner. The emails suggest the decision was driven as much by a defensive strategy against Amazon as it was by a belief in OpenAI's immediate potential.

This early correspondence provides crucial context for the multibillion dollar partnership that would eventually form between the two companies. It paints a picture not of unbridled technological optimism, but of a calculated corporate manoeuvre. Microsoft's leadership was wary, yet recognised the strategic imperative of preventing a major competitor from gaining an advantage in the nascent AI landscape.

• ·Emails from the Musk v. Altman lawsuit show Microsoft executives were sceptical of OpenAI in 2018.
• ·Microsoft's primary concern was that OpenAI might partner with rival Amazon Web Services.
• ·The internal discussions highlight the defensive strategy behind Microsoft's eventual investment.
• ·The correspondence provides context for the multibillion dollar partnership that followed.

Marissa Cross covers the policy, business, and competitive forces shaping the AI industry for the LiberaGPT team. A former technology reporter with a background in legal and regulatory affairs, she focuses on what the headlines miss.