OpenAI-Microsoft tensions escalate over control and contracts
Briefly

Enterprises may encounter service disruptions and cost increases as vendors adapt to changing business models driven by AI advancements. With Microsoft currently reliant on OpenAI models for its Copilot, competition from innovators like DeepSeek suggests a shift towards more independent AI capabilities. Analysts argue that the rapid evolution of AI necessitates a diverse, modular approach rather than sticking with a single solution, reflecting a bigger trend where enterprises must prepare for varied AI tools to maintain scalability and compatibility.
"Over the short to long term, enterprises could face service disruptions, compatibility issues, or increased costs as vendors adjust their business models in response to changes in the partnership or service offerings," said Prabhu Ram, VP of the industry research group at CyberMedia Research.
"The rate at which AI is advancing, especially given what DeepSeek has demonstrated, suggests that being locked into a single model is no longer a prudent strategy for Microsoft," said Neil Shah, VP of research and partner at Counterpoint Research.
Read at Computerworld
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