Microsoft is reportedly ready to abandon lengthy negotiations with OpenAI, threatening their strategic AI partnership. The eight-month talks center on restructuring their relationship as OpenAI transitions to a for-profit model. Points of contention include OpenAI's desire to limit Microsoft's ownership to 33% despite its $13+ billion investment, modify exclusive API reselling rights, and restrict Microsoft's access to the Windsurf AI code editor. OpenAI is considering accusing Microsoft of anticompetitive behavior and seeking regulatory review of their contract, which expires in 2030. This potential split could significantly reshape the AI industry's competitive landscape, potentially allowing other tech giants to access OpenAI's technology.