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.
Tens of thousands of Italians took to the streets across the country on Friday, as part of a day-long general strike called by unions in support of an...
Sarah Mullally was named on Friday as the new Archbishop of Canterbury, becoming the first woman to head the Church of England in its 1,400-year histo...
Indonesia on Friday (3 October) urged the European Union to immediately remove the countervailing and anti-dumping duties on its stainless steel produ...
Ukraine's largest private energy company DTEK has suspended operations at several gas facilities in the eastern Poltava region after Russian attacks, ...
The 20 points that U.S. President Donald Trump announced as part of his Gaza plan this week were not in line with the draft proposed by a group of Mus...
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.
Alibaba has released its most powerful artificial intelligence model to date, Qwen-3-Max-Preview, marking a major leap forward in the company’s AI ambitions.
A day of mourning has been declared in Portugal to pay respect to victims who lost their lives in the Lisbon Funicular crash which happened on Wednesday evening.
Video from the USGS (United States Geological Survey) showed on Friday (19 September) the Kilauea volcano in Hawaii erupting and spewing lava.
At least eight people have died and more than 90 others were injured following a catastrophic gas tanker explosion on a major highway in Mexico City’s Iztapalapa district on Wednesday, authorities confirmed.
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 powerful 7.4-magnitude earthquake struck off Russia’s Kamchatka Peninsula on 13 September with no tsunami threat, coming just weeks after the region endured a devastating 8.8-magnitude quake — the strongest since 1952.
Snapchat will start charging users who store more than 5GB of photos and videos in its Memories feature, prompting backlash from long-time users.
NASA officials on Tuesday said the agency's first crewed flight in its Artemis programme - a trip around the moon and back - is on track for launch in April and could potentially be moved up to February 2026.
In a discovery that pushes the limits of our cosmic imagination, astronomers have revealed a colossal bridge of gas and stars stretching between galaxies, accompanied by the longest tail ever observed, an intergalactic structure on a scale that rewrites what we know about the Universe.
The GLOBSEC Initiative on the Future of Cyberspace Cooperation has released a new research paper examining NATO’s potential use of artificial intelligence in cybersecurity.
A nationwide survey in Kazakhstan shows a split opinion on the role of Artificial Intelligence (AI) in education, with 40.5% viewing it positively and 37.4% seeing it as a threat to learning quality, according to the Institute of Public Policy reported in The Astana Times.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment