- Microsoft has signed a non-binding memorandum with Openai to its next phase
- Openai may become public after it distances itself from Microsoft
- It already uses Google and others to calculate power
Microsoft and Openai have signed a non-binding agreement to restructure Openai to a pre-profit company.
Details of the agreement have not been confirmed, but Openai could ultimately want to become public after raising capital and adopting a more conventional business management model according to its enormous success in recent years with generative AI.
The news comes after huge investments from Microsoft to Chatgpt Maker, including $ 1 billion in 2019 and a further huge investment of several trillion dollars in 2023, which later proved to be worth about $ 10 billion-dollars 18% of its total income for the second calendar quartal in 2023.
Openai to go into its next business phase
“Openai and Microsoft have signed a non-binding memorandum for understanding (MOU) for the next phase of our partnership,” shared Openai and Microsoft.
“We are actively working to end contractual terms in a final agreement. Together, we are still focused on providing the best AI tools to anyone based on our common commitment to security.”
Under previous terms, Microsoft had exclusive rights to sell Openai’s software via Azure and had preferred access to its technology, but this has since changed. Today, Microsoft is no longer Openai’s Sole Compute Provider. In July, we learned that Google Cloud would go with Openai for Compute Power.
Openai also seeks some degree of independence by reducing the dependence of third parties and building its own data center as part of $ 500 billion Project Stargate.
Pakinomist Reporting with reference to a memo from Openai NonProfit Councilor Bret Taylor suggests that the nonprofit arm could receive more than $ 100 billion in funding -approx. 20% of the valuation of $ 500 billion is looking for in private markets.
But with legislative obstacles that now stand between Openai’s shift of structure and its future, it remains what the shaking could mean for chatgpt maker, unclear.
Microsoft’s stock exchange rate rise peaked by 2.5% in trade after hours after the announcement and marked the investor’s confidence in his decision to free Openai from its reins.
