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.
U.S. President Donald Trump warned Iran to expect further strikes on Saturday (7 March). In a post on social media, he said Iran would be '...
U.S. President Donald Trump threatened further attacks on Iran on Saturday (7 March), while the Uni...
Russian attacks on Ukraine’s second largest city in the early hours of Saturday (7 March) killed 10 people, inc...
Tehran’s Mehrabad Airport came under attack in heavy airstrikes on early Saturday morning (7 March), Iranian ne...
Baku has completed its evacuation of staff from the Azerbaijan Consulate General in Tabriz, while most employees from...
Former U.S. Treasury Secretary Larry Summers has announced that he will retire from teaching at Harvard University at the end of the academic year, amid renewed scrutiny over his ties to the late convicted sex offender Jeffrey Epstein.
The Pentagon has threatened to designate artificial intelligence firm Anthropic as a “supply chain risk” amid a dispute over the military use of its Claude AI model, according to a report published Monday.
ByteDance will take steps to prevent the unauthorised use of intellectual property on its artificial intelligence (AI) video generator Seedance 2.0, the Chinese technology firm said on Monday.
Alphabet is emerging as a frontrunner in the global artificial intelligence race, as analysts and executives say Google has overtaken OpenAI, marking a sharp reversal from a year ago when the company was widely seen as lagging.
Officials in Azerbaijan have said they have stopped terror attacks in Azerbaijan including on an Israeli Embassy, the Baku-Tbilisi-Ceyhan pipeline and a Synagogue. Tensions between regional and global powers escalate. Military activity, security alerts and travel disruptions continue.
U.S. President Donald Trump warned Iran to expect further strikes on Saturday (7 March). In a post on social media, he said Iran would be 'hit very hard'. His comments came a week into the conflict with Iran, which has spread across the Middle East.
Lebanon's Hezbollah warned Israeli residents to evacuate towns within 5 km (3.11 miles) of the border between the countries in a message posted on its Telegram channel in Hebrew early on Friday.
The Azerbaijani State Security Service has said it has stopped Iran committing terror attacks against four targets in the country: Baku-Tbilisi-Ceyhan pipeline, the Israeli Embassy in Azerbaijan, a leader of the Mountain Jews religious community and the "Ashkenazi" synagogue.
The Israeli military says it has destroyed an underground bunker beneath Iran’s leadership complex in Tehran that it claims was built for former supreme leader Ali Khamenei.
Chinese electric vehicle giant BYD is pushing to make charging an electric car almost as quick and convenient as filling up a traditional petrol vehicle - a move that could help remove one of the biggest barriers to wider electric vehicle adoption.
South Korea will soon cease to be one of the few countries where Google Maps does not function fully, after its security-conscious government reversed a two-decade-old policy and approved the export of high-precision map data to overseas servers.
New research suggests 40,000-year-old carved objects from south-western Germany bear repeated marks arranged in organised sign sequences similar to early proto-cuneiform, although they are not regarded as a form of writing.
The chief executive of Google DeepMind, Demis Hassabis, has called for more urgent research into the risks posed by artificial intelligence, warning that stronger safeguards are needed as systems become more advanced.
NASA successfully completed a critical fueling rehearsal on Thursday (19 February) for its giant moon rocket, Artemis II, after earlier hydrogen leaks disrupted preparations for the next crewed lunar mission. The launch is scheduled for 6 March, according to the latest information from NASA.
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