Are Microsoft and OpenAI becoming full-on frenemies? [Fortune]
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Source: Fortune
It all began with Microsoft's $1 billion investment in OpenAI in 2019 and ramped up with its $10 billion commitment in 2023, much of which is in the form of cloud compute purchases instead of cash. In exchange, Microsoft got the right to reuse OpenAI's models and became a minority holder specifically in the profit-making part of OpenAI's business which, in turn, is “ legally bound to pursue the Nonprofit's mission.” That arrangement gives OpenAI some unusual powers. According to OpenAI, its nonprofit board will determine when the company has “ attained AGI ,” or artificial general intelligence—the point at which AI finally outperforms humans at “economically valuable work.” Once the board decides AGI has been reached, such a system will be “excluded from IP licenses and other commercial terms with Microsoft.” Translation: Once OpenAI achieves its stated mission of reaching AGI, Microsoft will presumably not have access to or be able to profit from OpenAI's AGI-level technology. I
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