Microsoft and OpenAI are engaged in tense negotiations that could unravel one of the most important alliances in AI and fundamentally reorder the industry. Why it matters: Microsoft has injected billions of dollars in OpenAI and made it a cornerstone of its AI strategy,

The Windsurf acquisition and future of Copilot are at the center of a growing rift between the longtime AI collaborators.

At the heart of the dispute is OpenAI's desire to restructure to a for-profit business, a move that requires Microsoft's approval.