Why Microsoft Pushed OpenAI Aside

Why Microsoft Pushed OpenAI Aside

By @mgsiegler
Publication Date: 2025-11-13 20:45:00

Without question, one of the most fascinating dynamics of the past few years has been the relationship between Microsoft and OpenAI. Drama aside, at the highest level, one of the largest companies in the world made one of the best investments in history. I mean that both monetarily (at least on paper) but also in terms of how it positioned Microsoft perfectly as one of the key players in what many believe to be the most important industry going forward – and perhaps ever: AI.

While much has been made about Satya Nadella being spooked by “The Blip” – the weekend where Sam Altman temporarily fell victim to a coup at OpenAI – and that clearly kicked off a series of events which saw Microsoft start to hedge their bet, it felt like that could have and perhaps should have been water under the bridge given OpenAI’s continued growth and increasing prominence as the most important company in AI. At the highest level, that’s why it has always felt so wild to me that Microsoft…