OpenAI is navigating a complex landscape as it aims to restructure and eventually go public, amid its recent valuation of $500 billion. A significant aspect of this process is its partnership with Microsoft, for which both companies recently announced they have signed a non-binding memorandum of understanding (MOU) outlining the next phase of their collaboration. The MOU emphasizes their shared commitment to developing AI tools while prioritizing safety, and both parties are working to finalize a definitive agreement.
Since 2019, Microsoft has invested $13 billion in OpenAI and receives a portion of the revenue generated by products like ChatGPT and its API. Interestingly, Microsoft has also started to view OpenAI as a competitor, allowing the latter to leverage other cloud service providers for computing resources while ramping up its own AI model development.
At a recent town hall meeting, Microsoft CEO Satya Nadella and AI chief Mustafa Suleyman discussed plans for “significant investments” in Microsoft’s own AI models. Suleyman highlighted the goal of building top-tier models internally, while also acknowledging the pragmatic use of external models when necessary.
Additionally, a notable detail from the agreement specifies that OpenAI’s nonprofit parent entity will maintain authority over its for-profit operations, which includes an equity stake exceeding $100 billion. This arrangement has prompted some pushback from other philanthropic and nonprofit organizations. Furthermore, the attorneys general of California and Delaware have initiated investigations into OpenAI’s restructuring plans. In response, OpenAI has stated its commitment to collaborating with these regulatory bodies to ensure its tools are beneficial and safe for users, while also advancing safety as a broader industry priority.
Source: https://www.theverge.com/news/776884/openai-microsoft-mou