US EditionMicrosoft, OpenAI reach new deal to allow OpenAI to restructure
- On Oct 28, OpenAI completed its recapitalization, creating a for-profit entity within a non-profit foundation, and Microsoft will hold roughly 27% of OpenAI Group, valued at about $135 billion.
- Operating constraints and fundraising needs pushed the change as OpenAI's nonprofit equity limits became untenable, governance tensions including the November 2023 board episode exposed instability, and Softbank's $30 billion conditional investment increased pressure to restructure.
- Under the new legal structure, the OpenAI Foundation will control OpenAI Group, own 26% of the for-profit, require AGI claims be verified independently, and commit to $250B of Azure services.
- Microsoft shares reacted, rising 2.5 per cent, with its market value surpassing $4 trillion, while Altman scheduled a livestream amid ongoing inquiries from California and Delaware attorneys general.
- The agreement binds the firms through at least 2032 via cloud and rights arrangements, allowing Microsoft to pursue AGI alone or with partners amid ChatGPT's more than 700 million weekly users.
242 Articles
242 Articles
Radio-Canada
Microsoft now controls 27% of OpenAI's capital, valued at $135 billion, following a change in the status of the start-up.
Microsoft now owns 27% of OpenAI as the company shifts to a for-profit model
The new arrangement solidifies OpenAI's position as a profit-seeking enterprise, ending nearly a year of restructuring discussions that had drawn scrutiny from regulators and investors. Under the terms, Microsoft's access to OpenAI's technology, including any systems capable of achieving artificial general intelligence (AGI), extends through 2032.Read Entire Article
New Microsoft–OpenAI Deal Paves the Way for AI Giant’s Future IPO - Hungarian Conservative
After months of negotiations, Microsoft and OpenAI have finalized a new strategic partnership that gives the tech giant a 27 per cent stake—worth around 135 billion dollars—in the ChatGPT developer. As part of the agreement, OpenAI will transition into a public-benefit corporation, a move expected to shape the company’s governance and open the door to a potential IPO in the coming years. According to OpenAI’s announcement, Microsoft previously h…
Microsoft, OpenAI (Finally) Finalize Terms of Not-Quite Divorce
Microsoft and OpenAI are staying together for the kids. Sort of. After lengthy deliberations en route to its transformation from a non-profit entity into a for-profit company, OpenAI finally came to terms Tuesday with its Big Tech incubator, Microsoft. It won’t exactly be a clean split. Now Without Azure-ances To recap, OpenAI was founded as a non-profit entity in 2015, with some $13 billion in backing from Microsoft and a stated goal of develop…
'Close eye' will be kept on OpenAI's for-profit conversion, says California's attorney general
The company also announced that Microsoft - a long-time backer of OpenAI - will now hold a roughly 27% stake in its new for-profit corporation, a slightly bigger share than OpenAI's own nonprofit.
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