OpenAI Moves to Challenge Microsoft as AI Productivity Tools Take Centre Stage
Elon Musk has reignited tensions in the tech world following Sam Altman’s remarks about the future of office productivity.
The ChatGPT co-founder suggested that a new generation of AI-powered tools could replace conventional platforms such as Google Docs, Slides, email, and Slack.
Envisioning AI agents that manage workflows and escalate issues only when necessary, Alt said,
“There is something new to build that is gonna replace a lot of the current sort of office productivity suite.”
Musk, a long-time critic of Microsoft’s relationship with OpenAI, responded sharply on X:
“As I was saying, OpenAI will compete directly with Microsoft.”
The Tesla CEO later added, commenting on a user’s post highlighting an old Musk tweet,
“At this point, it’s insanely suicidal for Microsoft to continue supporting OpenAI.”
His earlier prediction that “OpenAI is going to eat Microsoft alive” has resurfaced, highlighting the growing competition between the two tech giants.
Microsoft’s Deep Investment Faces New Risks
Microsoft has been a key investor in OpenAI since 2019, contributing $1 billion initially.
By the end of September 2025, its investment had grown to $11.6 billion, with a current stake in OpenAI valued at $135 billion, roughly 27% of the company on an as-converted diluted basis.
Despite the close partnership, the companies are increasingly listed as competitors in the AI space.
On a recent earnings call, Microsoft CEO Satya Nadella described the relationship as “one of the most successful partnerships and investments our industry has ever seen,” noting mutual benefits across multiple dimensions.
Yet, Microsoft has also begun publicly testing its own AI models, signalling ambitions to enhance its Copilot assistant independently from OpenAI.
Altman Critiques Slack and Imagines AI-Driven Workflows
Altman’s comments extend beyond competition.
Speaking on ‘Conversations with Tyler’, he described workplace chat apps as a source of “fake work.”
While OpenAI relies on Slack for internal communication, Altman admitted,
“I dread the first hour of the morning, the last hour before I go to bed, where I’m just dealing with this explosion of Slack, and I think it does create a lot of fake work.”
He envisions a future where AI handles the bulk of communication and workflow management.
“You are trusting your AI agent and my AI agent to work most stuff out and escalate to us when necessary.”
He suggested a productivity model where humans concentrate on strategic tasks and AI handles routine operations.
This approach could challenge the dominance of platforms like Slack, Microsoft Word, and Google Slides.
OpenAI Eyes AI Cloud Services Amid Expanding Ambitions
Altman also suggested OpenAI might directly sell computing capacity to companies and individuals.
“We are pretty sure the world is going to need a lot of ‘AI cloud’, and we are excited to offer this.”
Such a move would place OpenAI in direct competition with established cloud providers including Microsoft Azure, Google Cloud, and Amazon Web Services.
Competition Between Partners Highlights Shifting Dynamics
The evolving relationship illustrates the tension between collaboration and competition in AI.
Microsoft has historically relied on OpenAI’s models to power key products, yet the companies are now vying for influence in multiple AI domains.
OpenAI’s plans to develop an AI-driven productivity suite and offer cloud services could alter Microsoft’s strategic position in enterprise software and cloud computing.
Could AI Make Traditional Office Tools Obsolete
Coinlive observes that OpenAI’s ambitions signal a potential transformation in workplace productivity.
If AI agents truly manage communication, documentation, and workflow, tools long considered essential—like Slack, Word, and Google Docs—may lose relevance.
The shift challenges not just Microsoft and Google, but the very definition of productivity in the digital age.
The question emerges: in a world where AI handles the routine, how will human work be measured and valued?
Catherine
JinseFinance
Coinlive 
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