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OpenAI Developing Productivity Suite to Compete with Microsoft and Google in AI Workspace Battle

by Riah Marton
in Technology
OpenAI Developing Productivity Suite to Compete with  Microsoft and Google in AI Workspace Battle
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Generative AI pioneer OpenAI is heating up the productivity suite race by reportedly building a ‘productivity’ platform to rival Microsoft and Google, among others. The company is currently working on a productivity application similar to Microsoft Office and Google Workspace (formerly G Suite).

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The Information reports that OpenAI is also adding collaborative tools for editing documents and team communication directly inside ChatGPT. This is similar to Google Docs and Microsoft Word on the web, which pits OpenAI head-to-head with both companies in the enterprise productivity market.

Work on the suite started over a year ago, but was delayed due to engineering and resource limitations. Most recently, though, OpenAI has expedited its work, releasing features such as “Canvas,” which leverages AI to assist users in drafting and perfecting documents and code. Although these tools have not been fully launched, they represent the broader aspirations of OpenAI.

The OpenAI product chief, Kevin Weil, and other senior leaders had presented initial designs for the software nearly a year ago, according to the report. Progress had been slow initially, but work on the Canvas tool picked up pace in October last year.

Recently, OpenAI has quietly built software that allows multiple ChatGPT users to work together in real time in the app, a move that falls in line with the broader push toward remote and hybrid work.

The pivot to enterprise software comes as ChatGPT is gaining traction in the commercial place. The company is said to be striving to reach $10 billion in annual recurring revenue and has forecast itself to grow to as much as $125 billion by 2030. With increasing adoption of ChatGPT by businesses and organizations, OpenAI has also begun offering team-based subscriptions and discounts to enterprise customers.

The move could complicate OpenAI’s ties with Microsoft. The tech giant has put nearly $14 billion into OpenAI and has integrated GPT-4 into its Office suite via the Copilot tool. However, according to reports, some businesses are preferring ChatGPT instead of one of Microsoft’s AI offerings. This move reflects the possibility that Microsoft’s early lead in enterprise AI could be eroding as competition becomes more intense.

Google is also feeling the pressure. ChatGPT’s impact on web search traffic has also resulted in Iodine updating its search UI, and its release of “AI Mode” in Search based on Gemini 2.5. OpenAI’s foray into collaborative work tools ratchets up the competition between the two further.

If OpenAI were to add functionality such as file storage, ChatGPT would be even better positioned in the market, potentially becoming a bundle offering similar to Google Workspace or Microsoft 365. Adopted by most businesses seeking to streamline productivity with AI-powered tools, such integrations are expected to gain a lot of traction.

Still, it is uncertain if OpenAI will open-source the entire suite or ask for Microsoft’s approval, given their complex business relationship. According to recent reports, Microsoft may even walk away from ongoing negotiations regarding its alliance with OpenAI’s for-profit arm.

OpenAI’s productivity suite, if it were to launch, could emerge as a new front in the fight for AI supremacy, one that could put its closest of Silicon Valley partnerships to the test.

Tags: BattleCompeteDevelopingGoogleMicrosoftOpenAIProductivitySuiteWorkspace
Riah Marton

Riah Marton

I'm Riah Marton, a dynamic journalist for Forbes40under40. I specialize in profiling emerging leaders and innovators, bringing their stories to life with compelling storytelling and keen analysis. I am dedicated to spotlighting tomorrow's influential figures.

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