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Microsoft already effectively owns OpenAI. Their investments in OpenAI have granted them a 49% stake in the company, the right to sell any pre-AGI OpenAI produc
by ndiddy 2y ago
Microsoft already effectively owns OpenAI. Their investments in OpenAI have granted them a 49% stake in the company, the right to sell any pre-AGI OpenAI products to Microsoft's customers, and access to all pre-AGI product research. Microsoft's $10 billion investment in early 2023 (after ChatGPT's launch massively increased OpenAI's operating expenses) was mainly in Azure compute credits rather than cash and delivered in tranches (as of November 2023 they'd only gotten a fraction of that money). It also gives Microsoft 75% of OpenAI's profits until they make their $10 billion back. All of these deals have effectively made OpenAI into Microsoft's generative AI R&D lab. More information: https://www.wheresyoured.at/to-serve-altman/ https://www.wheresyoured.at/to-serve-altman/
- extr 2y agoFrom the standpoint of today, the deal is so lopsided to Microsoft as to be comical. They basically gave away their prized IP with the assumption they would have more capability leaps (hasn't really happened), and now the brains behind the original breakthroughs are all leaving/left. Microsoft is probably cannibalizing their enterprise sales with Azure. They are clearly middling at shipping actual products. People are acting like it's crazy to see executives leaving - IMO it's the perfect time right now. o1 is clearly wringing the last drops out of the transformer architecture and there is nothing up next.