Microsoft and OpenAI to expand partnership. What will change?
Microsoft and OpenAI are doubling down on their collaboration. I've been following this partnership for a while, and it's fascinating to see how it's evolving. They've officially announced they're entering the "next phase" with a non-binding memorandum of understanding. Think of it as a handshake agreement while they hammer out the specifics.
While the exact details are still under wraps, sources suggest the deal revolves around sharing both technology and the revenue generated from it. That makes sense, right? Microsoft gets access to OpenAI's cutting-edge AI, and OpenAI gets the financial backing and resources of a tech giant. It's a win-win, in theory.
One intriguing aspect is a change to the original agreement. Previously, Microsoft's access to OpenAI's most advanced AI (if it reached AGI) could be blocked by OpenAI's board. It seems they've tweaked that clause. I imagine Microsoft wasn't thrilled with the potential for that kind of limitation.
OpenAI's Future: A Public Benefit Corporation?
Reports suggest OpenAI is also giving an equity stake, valued at a hefty $100 billion, to its non-profit arm. This is interesting because it could pave the way for OpenAI to become a public benefit corporation. That means it would be legally obligated to consider the positive impact it has on society, not just maximizing profits.
If they are planning an eventual IPO, this transition makes sense. To do that, OpenAI needed to come to an agreement with Microsoft about equity. It's worth remembering that Microsoft has already invested over $13 billion in OpenAI and is entitled to a significant chunk (49 percent) of its future profits.
The path to this point hasn't been a straight line. Last year, whispers began about OpenAI potentially moving away from its non-profit structure. At one point, OpenAI even announced plans to transform itself into a public benefit corporation, allowing it to raise capital more easily. However, they later clarified that the non-profit board would retain control. Navigating the intersection of AI development, profit, and social responsibility is clearly a complex challenge, and there are many stakeholders with different interests and goals.
Source: Engadget