Microsoft and OpenAI broke up — now they’re ready to fight
Microsoft just announced in-house reasoning models and AI agents at Build. The partnership with OpenAI is effectively over.

Why it matters
Microsoft is breaking free from OpenAI dependency by shipping its own AI capabilities—reasoning models, agents, and a super app—signaling a major shift in the competitive AI landscape and threatening OpenAI's primary enterprise distribution channel.
The key facts
6 to knowMicrosoft announced in-house reasoning models at Build conference
New AI agents and super app launched
New cybersecurity AI tool released
Microsoft-OpenAI partnership effectively separated in late April 2026
Microsoft remains OpenAI's primary cloud partner 'for now'
Partnership described as 'drama-filled' and devolved into 'situationship'
Go to the source
The Verge AItheverge.com
Publisher excerpt: At Microsoft's annual Build conference on Tuesday, the company announced a slew of new or expanded AI initiatives, including a super app, in-house reasoning models, a cybersecurity tool, and OpenClaw-esque AI agents. All this news added up to a clear message: Microsoft is positioned to be one of…