5 ms·

What do you mean by, "M$ will likely try to buy them"? My understanding is that Microsoft owns a 49% stake of OpenAI and gets 75% of their profits until Micro

What do you mean by, "M$ will likely try to buy them"? My understanding is that Microsoft owns a 49% stake of OpenAI and gets 75% of their profits until Microsoft recoups their investment. Are you saying you feel that OpenAI will not find a path to profitability and will sell their remaining stake to Microsoft?

strangattractor 3y ago
I was unaware of that. Interesting - "Profits" is an interesting term. Movies never make "Profits" despite "Grossing" billions. I was just extrapolating from observing M$ behavior for several decades. M$ to my knowledge has never been the sharing type. They will control it either by buying it outright and owning or they will develop their own version still owning and controlling. They will weave the functionality into their Office products. They would likely consider it suicide to depend on an outside party to supply a key tech for their cash cow.
- networkchad 3y ago
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- SeanAnderson 3y ago
  They already have woven it into their office products. ChatGPT is licensed out through Office365 as a sort of "co-pilot for Office" at $30/mo. It's currently trialing with ~600 companies in their early access program. price: https://blogs.microsoft.com/blog/2023/07/18/furthering-our-ai-ambitions-announcing-bing-chat-enterprise-and-microsoft-365-copilot-pricing/#:~:text=Microsoft%20365%20Copilot%20will%20be%20available%20for%20commercial%20customers%20for,Premium%20customers%20when%20broadly%20available https://blogs.microsoft.com/blog/2023/07/18/furthering-our-a.... user count: https://www.microsoft.com/en-us/microsoft-365/blog/2023/05/09/introducing-the-microsoft-365-copilot-early-access-program-and-new-capabilities-in-copilot/#:~:text=paid%20preview%20that%20will%20roll%20out%20to%20an%20initial%20wave%20of%20600%20customers%20worldwide.%C2%A0%C2%A0 https://www.microsoft.com/en-us/microsoft-365/blog/2023/05/0...
summerlight 3y ago
Probably as an acquihire? For MS, it makes hugely sense to buy an industry leading AI org at $100B, or even more than that. 75% of OpenAI's profit is very small compared to what they'll get by this hypothetical acquisition.
- wrsh07 3y ago
  Tbh I don't think OpenAI would sell for 100bb unless they are seriously strapped for cash and can't fundraise any other way. Given their current revenue projections I would be surprised if that happened
  - strangattractor 3y ago
    They spent $8 billion to buy Skype in 2011.
    - wrsh07 3y ago
      To be clear: I think Microsoft would gladly pay 100bb to acquire OpenAI (although I think that one would give the lawyers a headache given the weird corporate structure) I don't think OpenAI would sell though The top people at OpenAI are all ideologically motivated

strangattractor 3y ago

I was unaware of that. Interesting - "Profits" is an interesting term. Movies never make "Profits" despite "Grossing" billions. I was just extrapolating from observing M$ behavior for several decades. M$ to my knowledge has never been the sharing type. They will control it either by buying it outright and owning or they will develop their own version still owning and controlling. They will weave the functionality into their Office products. They would likely consider it suicide to depend on an outside party to supply a key tech for their cash cow.

networkchad 3y ago
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SeanAnderson 3y ago
They already have woven it into their office products. ChatGPT is licensed out through Office365 as a sort of "co-pilot for Office" at $30/mo. It's currently trialing with ~600 companies in their early access program. price: https://blogs.microsoft.com/blog/2023/07/18/furthering-our-ai-ambitions-announcing-bing-chat-enterprise-and-microsoft-365-copilot-pricing/#:~:text=Microsoft%20365%20Copilot%20will%20be%20available%20for%20commercial%20customers%20for,Premium%20customers%20when%20broadly%20available https://blogs.microsoft.com/blog/2023/07/18/furthering-our-a.... user count: https://www.microsoft.com/en-us/microsoft-365/blog/2023/05/09/introducing-the-microsoft-365-copilot-early-access-program-and-new-capabilities-in-copilot/#:~:text=paid%20preview%20that%20will%20roll%20out%20to%20an%20initial%20wave%20of%20600%20customers%20worldwide.%C2%A0%C2%A0 https://www.microsoft.com/en-us/microsoft-365/blog/2023/05/0...

summerlight 3y ago

Probably as an acquihire? For MS, it makes hugely sense to buy an industry leading AI org at $100B, or even more than that. 75% of OpenAI's profit is very small compared to what they'll get by this hypothetical acquisition.

wrsh07 3y ago
Tbh I don't think OpenAI would sell for 100bb unless they are seriously strapped for cash and can't fundraise any other way. Given their current revenue projections I would be surprised if that happened
- strangattractor 3y ago
  They spent $8 billion to buy Skype in 2011.
  - wrsh07 3y ago
    To be clear: I think Microsoft would gladly pay 100bb to acquire OpenAI (although I think that one would give the lawyers a headache given the weird corporate structure) I don't think OpenAI would sell though The top people at OpenAI are all ideologically motivated