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OpenAI is giving its long-time backer Microsoft Corp. a 27% ownership stake as part of a restructuring plan that took nearly a year to negotiate, removing a major uncertainty for both companies and clearing the path for the ChatGPT maker to become a for-profit business.
Under the revised pact, Microsoft will get a stake in OpenAI worth about $135 billion, the companies said in a statement Tuesday. In addition, Microsoft will have access to the artificial intelligence startup’s technology until 2032, including models that achieved the benchmark of artificial general intelligence (AGI), a more powerful form of AI that most say does not exist yet.
Microsoft will also continue to be entitled to receive 20% of OpenAI’s revenue, according to people familiar with the matter, who spoke on condition of anonymity as the information is not public. But as part of the new pact, OpenAI can pay more later. In a blog post, the companies said a revenue share agreement remains in effect until an expert panel verifies AGI.
With the agreement, OpenAI said its corporate restructure is now complete. The company had spent much of this year working to form a more traditional for-profit company, which is considered more attractive to investors. Microsoft, which backed OpenAI with some $13.75 billion, was the biggest holdout among the ChatGPT maker’s investors, Bloomberg News has reported.
Today's show features:
- Bloomberg Intelligence Senior Technology Analyst Anurag and on Microsoft taking a 27% stake in OpenAI
- Danielle DiMartino Booth, CEO and Chief Strategist at QI Research, on this week’s FOMC meeting and interest rate decision
- Bloomberg News Climate Reporter Eric Roston on impact of Hurricane Melissa in the Caribbean and beyond, as well as his recent Big Take on the growing “disaster economy”
- James Walker, Chief Executive Officer of NANO Nuclear Energy, on the launch of the firm’s KRONOS MMR drilling program at the University of Illinois at Urbana-Champaign (with Bloomberg News Energy Reporter Will Wade)
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