Why Microsoft and OpenAI are at odds

In today’s Finshots, we take a look at why semantics could decide the outcome of a potential multi-billion-dollar lawsuit between Microsoft and OpenAI.

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The Story

For most people, generative AI is simple. You ask a question, and it gives you an answer. And if you ask a follow-up, it responds again. It’s like a conversation with any other person.

But behind this interaction lies a small detail: Does the AI model ‘remember’ things you’ve said earlier?

If it does, it’s called a ‘stateful’ model. If it treats every question like a fresh start, it’s called ‘stateless’.

And right now, that tiny distinction sits at the centre of a potential multi-billion-dollar battle between Microsoft, OpenAI, and…