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Let's see how it unfolds. Altman is kinda teenager in business matters and MS is a giant. They should definitely have some back-up plan. But I don't think they'll let him build a competition, but maybe they are thinking to upgrade LinkedIn with AI.
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There was a second thought coming to mind: Since MS has started releasing their own models (#1198728, #1205738), maybe Altman is pissed off and in his mind returning the favor?
That too would be a losing proposition though; I remember working with startups in early bitcoin that would be too easily triggered by the competition and because of that were always distracted. Ego kills startups.
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That would be audacity-squared!