OpenAI wants to turn into a for-profit company, Microsoft raises obstacles, and negotiations focus on four major points
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2024-12-26 23:32 5,029
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Golden Finance reports that OpenAI CEO Altman hopes to transform this artificial intelligence development company managed by a non-profit organization into a for-profit company, and the biggest obstacle he faces is Microsoft. The company has significant influence in this process, as it has committed more than $13 billion to OpenAI. The two companies have been negotiating potential changes to OpenAI's structure since October, with discussions focusing on four areas: Microsoft's stake in the for-profit entity; and whether Microsoft will continue to serve as OpenAI's exclusive cloud service provider. ; how long Microsoft will maintain the right to use OpenAI intellectual property to meet its product needs; and whether Microsoft will continue to take 20% of OpenAI's revenue. The information comes from people familiar with the matter who have discussed it with Altman. It's unclear when OpenAI and Microsoft plan to complete the process, but the parties are moving quickly and are under time pressure: If OpenAI doesn't complete the transition within the next two years, investors in the most recent round could get their money back, as well as 9% of interest – totaling approximately $7.2 billion. Company leaders have already told employees that OpenAI hopes to buy back some of their stock following a profitable transition, so employees now have good reason to want this change completed as quickly as possible.