Tech giant Microsoft and AI company OpenAI are reportedly in discussions to revise their investment agreement, with Microsoft being OpenAI’s primary financial supporter. According to a report from the Financial Times, Microsoft is considering relinquishing some of its equity in OpenAI to maintain access to the AI firm’s products and models post-2030, when certain terms of the original deal expire. Microsoft has injected over $13 billion into OpenAI since their initial collaboration in 2019. OpenAI is in the process of reshaping its business to focus on profitability, a move that has faced opposition from co-founders like Elon Musk and early investors. The partnership between Microsoft and OpenAI plays a pivotal role in OpenAI’s restructuring and the future of the US-based AI startup. The development of AI has emerged as a significant policy objective for global leaders as the competition in the AI sector intensifies. OpenAI, established as a non-profit organization in 2015 by Elon Musk, Sam Altman, and Ilya Sutskever, contemplated transitioning to a for-profit entity in 2024, a decision that Musk strongly criticized. Musk raised concerns about the proposed shift’s legality in a legal filing in November 2024. He also criticized OpenAI’s shift towards closed-source software, deviating from its original open-source vision. Musk even proposed a $97.4 billion bid to acquire OpenAI, which was promptly rejected by CEO Sam Altman. Recently, OpenAI announced its decision to abandon the for-profit transformation and instead transition into a public benefit corporation, under the governance of a non-profit organization. This move aims to balance profit motives with social and public welfare obligations.
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