Microsoft and OpenAI Wrangle Over Terms of Their Blockbuster Partnership
OpenAI CEO Sam Altman wants to convert the artificial intelligence developer, which is governed by a nonprofit, into a for-profit corporation. His biggest hurdle is Microsoft, which has outsize influence on the process after having committed more than $13 billion to OpenAI.
The companies have been negotiating potential changes in OpenAI’s structure since around October. Those talks have focused on four areas: Microsoft’s equity stake in the for-profit entity; whether Microsoft will continue to be OpenAI’s exclusive cloud provider; how long Microsoft will maintain rights to use OpenAI’s intellectual property in its products as it pleases; and whether Microsoft will continue to take 20% of OpenAI’s revenue, according to a person who has talked to Altman about the discussions.
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