Microsoft and OpenAI broke up — now they’re ready to fight

Microsoft announced new AI initiatives at its Build conference, including in-house reasoning models (AI systems designed to work through problems step-by-step) and AI agents (software that can perform tasks autonomously), signaling it is moving toward independence in the AI market. The company's partnership with OpenAI, which previously dominated Microsoft's AI strategy, effectively ended in late April, though Microsoft still provides cloud computing services (the remote servers that store and process data) to OpenAI.