Salesforce CEO Marc Benioff couldn't help but chuckle when discussing the recent rift in Microsoft's relationship with OpenAI during an interview with CNBC from Davos. The news marks a significant shift in the partnership between the two tech giants, as OpenAI prepares to team up with SoftBank and Oracle on a massive $500 billion data center project called Stargate.

Benioff's amusement stems from his prediction that Microsoft will eventually abandon OpenAI in favor of its own AI developments. "I think it's extremely important that OpenAI gets to other platforms quickly because Microsoft is building their own AI and I don't think Microsoft will use OpenAI in the future," Benioff said, citing Microsoft's hiring of Mustafa Suleyman, a former OpenAI executive, to lead its AI efforts. Benioff believes that Suleyman's appointment is a clear indication of Microsoft's intentions to develop its own AI capabilities, potentially rivaling OpenAI's offerings.

The writing was on the wall for the exclusive partnership between Microsoft and OpenAI. Microsoft invested $1 billion in OpenAI in 2019, but the agreement was always meant to be temporary, with the understanding that OpenAI would eventually achieve AGI (Artificial General Intelligence) and no longer require Microsoft's exclusive hosting. With OpenAI's rapid growth and the release of ChatGPT in 2022, it's clear that the company is poised to become a major player in the AI industry, potentially rivaling Microsoft itself.

Tensions between Microsoft and OpenAI have been building since mid-2023, following OpenAI's release of its own enterprise product, which competed directly with Microsoft's offerings. The relationship took a further hit when OpenAI's CEO, Sam Altman, was fired and then reinstated in late 2023. Employees from both companies have reportedly expressed dissatisfaction with working together, with some OpenAI employees looking down on their Microsoft counterparts.

Microsoft's hiring of Mustafa Suleyman, a co-founder of DeepMind and Inflection, to lead its AI efforts in early 2024 was seen as a clear sign of the growing rift between the two companies. Suleyman has publicly expressed disagreements with Altman's vision for AGI, and has admitted to "little tensions here and there" in the partnership. Microsoft has yet to respond to requests for comment on the matter.

While Benioff may be optimistic about Microsoft eventually abandoning OpenAI, it's unclear whether that will come to pass. Microsoft is reportedly working on its own large language model, MAI-1, and has announced a new AI group led by Jay Parikh that will focus on building AI agents and apps. Notably, the announcement made no mention of OpenAI.

The shift in the partnership between Microsoft and OpenAI is a significant development in the AI industry, with far-reaching implications for the future of AI development and deployment. As OpenAI prepares to team up with SoftBank and Oracle on the Stargate project, it's clear that the company is poised to become a major player in the industry, potentially rivaling Microsoft and other tech giants.

Benioff's Salesforce, which uses OpenAI's enterprise models and has invested in OpenAI rival Anthropic, stands to benefit from the shift in the partnership. However, the implications of this development extend far beyond the interests of any single company, and will likely have a profound impact on the future of AI development and deployment.