Microsoft Microsoft signed a new agreement with OpenAI. OpenAI signed on to purchase an additional $250 billion worth of Azure services, and Microsoft will no longer have the pre-selection right to become an OpenAI computing power provider. OpenAI can now collaborate with third parties to develop products; API products developed in partnership with third parties will remain exclusive to Azure, while non-API products can be deployed on any cloud platform. Microsoft supports the OpenAI board's establishment of a public welfare corporation, and Microsoft holds an investment interest in the OpenAI Group Public Welfare Corporation worth approximately $135 billion.
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OpenAI's restructuring is complete! Microsoft acquires a 27% stake and has renewed its AI collaboration until 2032.
On Tuesday (October 28) local time, Microsoft and artificial intelligence... AI research company OpenAI announced an agreement that mainly involves restructuring OpenAI's architecture and cooperation between the two parties in the field of AI.
Boosted by this, Microsoft's U.S. stock rose more than 4% at one point on Tuesday.
According to the company's press release, OpenAI has completed its restructuring, with its non-profit entity now renamed the OpenAI Foundation, holding approximately $130 billion in equity in its for-profit division. OpenAI's for-profit division has been restructured into a Public Benefit Corporation called OpenAI Group PBC.
Under the new structure, the OpenAI Foundation will hold 26% of the equity, while current and former employees and investors will hold a combined 47%. Microsoft, as OpenAI's largest shareholder, will receive 27% of the equity, worth approximately $135 billion.
Previously, excluding the latest funding round, Microsoft held approximately 32.5% of the shares. According to currently available information, Microsoft has supported OpenAI since 2019 and has invested more than $13 billion in total.
In December of last year, OpenAI announced its planned restructuring, a move aimed at better attracting external investment. Following its latest secondary market sale, OpenAI's valuation in the private market is $500 billion.
OpenAI stated, "The greater OpenAI's commercial success, the higher the value of the equity held by the nonprofit foundation, and these proceeds will be used to support the foundation's philanthropic endeavors."
The OpenAI Foundation plans to initially invest $25 billion to drive breakthroughs in the health sector and research into AI safety technologies.
Under the agreement, OpenAI will purchase $250 billion worth of Azure cloud computing in the future. Microsoft will relinquish its previous priority supply rights for OpenAI computing services.
The previous agreement between the two parties stipulated that Microsoft owns the intellectual property rights to OpenAI products and models. The right to use the software is valid until 2030 or until OpenAI achieves Artificial General Intelligence (AGI).
The new agreement extends this deadline to 2032, and the authorization will remain in effect even if an independent panel of experts confirms that OpenAI has achieved AGI.
At the same time, OpenAI will continue to be Microsoft’s cutting-edge model partner and will enjoy exclusive intellectual property rights and access to the Azure API until the AGI technology milestone is achieved.
(Article source: CLS)
