The AI Daily Brief (Formerly The AI Breakdown): Artificial Intelligence News and Analysis The AGI-Sized Hole in the Microsoft-OpenAI Partnership
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Oct 23, 2024 Microsoft and OpenAI's partnership faces turbulence as financial pressures and internal conflicts come to light. A recent report suggests that Microsoft might lose OpenAI's technology upon the achievement of AGI, depending on OpenAI's board. Meanwhile, Perplexity is making waves with impressive growth and ambitions in the AI sector, eyeing a hefty $500 million in funding. The evolving dynamics of big tech players like Apple and Google in AI further underscore the competitive landscape!
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Microsoft and OpenAI's Bromance in Trouble
- Microsoft's relationship with OpenAI is increasingly strained due to financial pressures and disagreements.
- The situation escalated after Sam Altman's brief firing and rehiring.
OpenAI Seeks New Investors, Diversifies Compute
- Microsoft invested heavily in OpenAI but now holds a smaller stake.
- OpenAI is diversifying its compute providers, contracting with Oracle through Microsoft.
Complex Contract Terms and Restructuring
- Microsoft and OpenAI's contract terms are complex and involve future profit sharing, IP control, and governance rights.
- The upcoming restructuring of OpenAI to a for-profit complicates matters further.