OpenAI Is Poaching Microsoft’s Customers and Triggering an AI Turf War

Microsoft (MSFT) wanted Copilot to dominate the enterprise. But users are ditching it for ChatGPT. According to Bloomberg, customers like Amgen have scrapped Copilot because employees prefer OpenAI’s flagship chatbot. It’s a sign the Copilot brand is losing credibility inside the very market Microsoft spent billions to win.

This is no friendly rivalry. OpenAI is now eating into Microsoft’s customer base, pushing its own ChatGPT Enterprise offering while still relying on Microsoft for infrastructure. It’s a chess move, and Microsoft is visibly rattled.

Microsoft Rebrands, Retreats, and Rethinks the AI Stack 

In response, Microsoft is scrambling to reframe the narrative. It’s pushing new models like Phi, bundling third-party engines including Grok and DeepSeek, and repackaging its suite as “Microsoft AI” instead of leaning too hard on OpenAI’s name.

You don’t rebrand unless the ground is shifting. Microsoft doesn’t want to be seen as just OpenAI’s hosting provider. Azure was supposed to be the backbone of the AI revolution. Now it risks being just another cloud in OpenAI’s multi-vendor strategy.

OpenAI Diversifies the Cloud and Gains Leverage 

OpenAI, for its part, is making itself less dependent. It’s locked in new deals with Google Cloud, Oracle, and SoftBank’s Stargate project. The move cuts its Azure reliance and signals that OpenAI isn’t just a Microsoft extension—it’s a competitor.

With more compute partners, OpenAI gains serious leverage. When renewal talks happen, it won’t be begging for GPU access. It will be naming terms. That changes the power balance between the two fast.

OpenAI Threatens Antitrust Salvo as Tensions Climb 

Behind the scenes, OpenAI has reportedly floated the nuclear option, a potential antitrust complaint against Microsoft. Sources told Bloomberg and WSJ that OpenAI might challenge Microsoft’s terms under Windsurf and its tight grip on IP use and revenue share.

That could open a legal can of worms. But it also signals just how far this “partnership” has drifted. If regulators get involved, the Copilot-ChatGPT divorce could get a lot messier. AI leadership was supposed to be a shared crown. But in 2025, it’s looking more like a tug-of-war.

Is Microsoft a Good Stock to Buy?

Microsoft shares took a small hit after reports of Copilot dissatisfaction went public. Analysts are now debating whether OpenAI is undervalued—or if Microsoft has overextended itself by tying its brand so closely to someone else’s tech.

On TipRanks, Microsoft stock (MSFT) is rated a Strong Buy, based on 35 analyst ratings: 30 Buys, five Holds, and zero Sells. The average 12-month MSFT price target is $516.14, representing a 5.82% upside from the current trading level of $487.77.

If the ChatGPT Enterprise rollout keeps building momentum and OpenAI continues to siphon enterprise demand, expect some of those price targets, and ratings, to move.

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