Inside Microsoft’s Troubled Ties with OpenAI: Insights from Marc Benioff on Mustafa Suleyman’s Hiring

Salesforce CEO Marc Benioff recently commented on the growing rift between Microsoft and OpenAI during an interview with CNBC from Davos. This change follows OpenAI’s new partnership with SoftBank and Oracle for a massive $500 billion data center initiative called Stargate, which has led to Microsoft no longer being OpenAI’s exclusive cloud provider.
Benioff humorously suggested that OpenAI’s expansion to other platforms is vital because Microsoft is now developing its own AI technologies and may not rely on OpenAI in the future. He remarked, “They hired Mustafa Suleyman. And Mustafa Suleyman and Sam Altman are not best friends,” emphasizing the friction between the leaders of these AI giants.
The tensions between the two organizations have been evident for some time. At last year’s Davos event, Benioff noted animosity during panel discussions involving Suleyman and Altman. Microsoft, which had invested $1 billion in OpenAI back in 2019, had an agreement that would end once OpenAI achieved what they defined as Artificial General Intelligence (AGI). As Sam Altman indicated recently, AGI is a near reality, pointing to a significant shift in the landscape.
The relationship began to deteriorate after OpenAI launched its competing enterprise product in mid-2023, further highlighted by internal reports of friction following Altman’s controversial firing and reinstatement as CEO in late 2023. Following these events, employees from both companies indicated an unwillingness to collaborate, with OpenAI staff reportedly looking down on their Microsoft counterparts.
In early 2024, Microsoft made a strategic move by hiring Mustafa Suleyman from DeepMind and Inflection to spearhead its AI initiatives. This decision adds complexity to Microsoft’s plans, as reports suggest the development of its own language model, MAI-1, without the mention of OpenAI in their recent announcements.
For Benioff, this shift arguably benefits Salesforce, which utilizes OpenAI’s models and also invests in OpenAI competitor Anthropic. However, Benioff’s hopes for Microsoft to pivot away completely from OpenAI may be overly optimistic, as tensions will likely continue to unfold in this evolving tech rivalry.
For further details on related topics, you can explore:
- Microsoft is no longer OpenAI’s exclusive cloud provider
- OpenAI teams up with SoftBank and Oracle on $500 billion data center project
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