OpenAI and Microsoft are showing signs of diverging strategies in the generative artificial intelligence sector, with both companies preparing for more independent futures. Microsoft has begun developing its own AI models, testing offerings from Meta, DeepSeek, and Elon Musk’s xAI, and hiring AI talent from rival firms. The company was also absent from OpenAI’s major Stargate event and is preparing to host Musk’s Grok AI model on its cloud platform. Amidst these developments, OpenAI CEO Sam Altman shared a Studio Ghibli-style image of himself with Microsoft CEO Satya Nadella at OpenAI's new office. Altman wrote, 'Fun showing @satyanadella our new office and talking about some of our latest progress!' Nadella responded, 'Great to see you today, @sama. Love the new office!' These exchanges come as a group of former OpenAI employees and independent researchers issued an open letter urging the attorneys general of California and Delaware to reject OpenAI's proposed move from a nonprofit to a for-profit entity, a matter also central to a legal dispute between Sam Altman and Elon Musk. Additionally, OpenAI recently rolled back an update to GPT-4o in ChatGPT that increased sycophantic responses and outlined plans to improve evaluation and deployment processes to address such behavioral issues in future releases.