Microsoft and OpenAI announced Thursday a non-binding deal outlining terms that would allow OpenAI to restructure into a for-profit company, marking a key step in the high-profile partnership fueling ChatGPT’s growth.
The new commercial arrangements, details of which were not disclosed, are intended to finalize a definitive agreement enabling OpenAI to raise capital under a more conventional governance structure and eventually go public to fund artificial intelligence development.
Microsoft previously invested $1 billion in OpenAI in 2019 and $10 billion at the start of 2023. Under prior agreements, Microsoft had exclusive rights to sell OpenAI software via Azure and preferred access to its technology. The company was once OpenAI’s sole compute provider but relaxed its role this year, allowing OpenAI to pursue its own data center project, Stargate, and sign multi-billion-dollar cloud deals with Oracle and Google.
As OpenAI’s revenue grows into the billions, it seeks partnerships with additional cloud providers to expand sales and secure computing capacity. Microsoft, meanwhile, wants continued access to OpenAI’s technology even if its models reach humanlike intelligence, a milestone that could end the current partnership under previous terms.
OpenAI’s nonprofit arm is expected to receive over $100 billion, about 20 percent of the $500 billion valuation the company seeks in private markets, making it one of the best-funded nonprofits globally, according to Bret Taylor, chairman of OpenAI’s nonprofit board. The companies did not disclose Microsoft’s ownership stake or whether it would retain exclusive access to OpenAI’s newest models.
Regulatory approval is still required from attorneys general in California and Delaware. OpenAI hopes to complete the conversion by year-end to secure billions in funding tied to the timeline.
The two companies compete across products ranging from consumer chatbots to AI tools for businesses, while Microsoft continues developing its own AI models to reduce reliance on OpenAI technology.
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United States chipmaker AMD will supply artificial intelligence chips to OpenAI in a multi-year agreement that could generate tens of billions of dollars in annual revenue and give the ChatGPT maker the option to acquire up to 10% of the company.
The relationship between OpenAI and NVIDIA represents one of the most consequential partnerships in the artificial intelligence (AI) industry, a symbiotic alliance that has evolved from humble beginnings to a £73 billion strategic collaboration that could reshape the future of computing.
Semiconductor shares from Asia to Europe rose sharply on Tuesday after Nvidia unveiled a $100 billion partnership with OpenAI to build massive Artificial Intelligence (AI) systems requiring millions of processors.
Chipmaker Nvidia will invest up to $100 billion in ChatGPT owner OpenAI and provide it with data centre chips, the companies announced Monday, forming a major partnership in the global artificial intelligence race.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A tsunami threat was issued in Chile after a magnitude 7.8 earthquake struck the Drake Passage on Friday. The epicenter was located 135 miles south of Puerto Williams on the north coast of Navarino Island.
The war in Ukraine has reached a strategic impasse, and it seems that the conflict will not be solved by military means. This creates a path toward one of two alternatives: either a “frozen” phase that can last indefinitely or a quest for a durable political regulation.
A shooting in Nice, southeastern France, left two people dead and five injured on Friday, authorities said.
Snapchat will start charging users who store more than 5GB of photos and videos in its Memories feature, prompting backlash from long-time users.
Nokia chief executive Justin Hotard said artificial intelligence is fuelling a structural growth cycle similar to the internet expansion of the 1990s, but rejected fears that investor enthusiasm has reached unsustainable levels.
NASA has announced that it will reopen bidding for its flagship U.S. moon landing contract, citing mounting delays in Elon Musk’s SpaceX Starship lunar lander project.
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Chinese tech giants, including Alibaba-backed Ant Group (688688.SS) and e-commerce company JD.com have halted plans to issue stablecoins in Hong Kong after the government raised concerns about the increasing influence of privately controlled currencies, the Financial Times reported on Saturday.
Apple has pledged to increase its investment in China despite ongoing tensions between Washington and Beijing, CEO Tim Cook said during a meeting with China’s industry minister.
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