By Adam Clark

Tensions between OpenAI and Microsoft appear to be rising.

An executive at the ChatGPT developer announced this week that the company is creating an alternative to LinkedIn. Also, OpenAI will develop its own in-house chips, according to various reports. The pair of headlines put the start-up in deeper competition with its major financial backer.

OpenAI and Microsoft didn't immediately respond to Barron's requests for comment.

OpenAI is planning a jobs platform to connect workers and companies that looks like it would directly compete with LinkedIn, which is owned by Microsoft.

"The OpenAI Jobs Platform will have knowledgeable, experienced candidates at every level, and opportunities for anyone looking to put their skills to use," wrote Fidji Simo, OpenAI's chief executive officer of applications, in a blog post on Thursday. "And we'll use AI to help find the perfect matches between what companies need and what workers can offer."

LinkedIn is a tiny part of Microsoft's business. But the move underlines how OpenAI is treading on its investors' toes. The two companies previously clashed over OpenAI's plans to acquire coding start-up Windsurf and whether Microsoft would receive access to its intellectual property, according to The Wall Street Journal. The acquisition subsequently fell apart.

A larger concern for Microsoft could be OpenAI's possible plans to develop its own in-house AI chip with the help of Broadcom. Multiple Wall Street analysts concluded that OpenAI was the new mystery client that Broadcom referred to in its earnings report on Thursday. The Financial Times reported the two were working together, citing multiple people familiar with the partnership.

Microsoft has its own AI chip, the Maia 100, developed in partnership with OpenAI. The AI startup's potential plans to develop alternative hardware suggest it is unlikely to be a significant customer for Microsoft's processors in the future.

Microsoft has pumped $13 billion into OpenAI since 2019. The firm doesn't currently own equity in OpenAI, instead receiving a share of future profit. The two companies are still negotiating over what stake Microsoft might receive in a future restructuring.

OpenAI is currently structured as a nonprofit company with a board that oversees its for-profit business. The company intended to become a more conventional profit-seeking company but scrapped the plan earlier this year after discussions with civic leaders and the attorneys general of California and Delaware, who would be required to sign off on it.

Instead, the company's for-profit subsidiary will turn into a public-benefit corporation, requiring the company to balance shareholder interests and the public benefit in its decision-making. It isn't clear what equity Microsoft would receive in OpenAI under the planned conversion.

OpenAI still relies heavily on Microsoft's cloud-computing resources. However, OpenAI has also struck computing infrastructure deals with Oracle and CoreWeave.

Write to Adam Clark at adam.clark@barrons.com

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September 05, 2025 10:52 ET (14:52 GMT)

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