![]() ![]() After all amounts are repaid, OpenAI will regain full ownership and control. Once recouped, Microsoft and the VCs will share 49% of profits ($92 billion for Microsoft and $150 billion for the VCs). Then, Microsoft will receive 75% of profits until it recoups its $13 billion investment. Profit distribution follows this process: Early investors, including Khosla Ventures, and the Reid Hoffman Foundation, will receive the initial return on investment. Although OpenAI received over $10 billion in funding from Microsoft, it remains an independent entity and is unwilling to be relegated to a supporting role.Īccording to an article, OpenAI's ownership structure includes Microsoft and venture capitalists (VCs), each holding 49%, while the OpenAI Fund has 2%. Microsoft, being a business entity, is not inclined to act as a mere stepping stone for OpenAI's success. ![]() Resolving these conflicts requires compromises from both parties to find a mutually beneficial solution. Looking ahead, OpenAI's continuous advancements, particularly with ChatGPT, have the potential to reshape the consumer application ecosystem, which could significantly impact Microsoft. While Microsoft provides financial and computational support to OpenAI for research and development, and OpenAI's advanced AI technologies enhance Microsoft's software products, there are underlying conflicts of interest between the two.īoth Microsoft and OpenAI offer similar technical services to business customers, resulting in direct competition. The news uncovers that their collaboration is more complex than initially perceived. On the other hand, OpenAI has implemented defensive measures such as delaying access to Microsoft's product APIs and delaying the provision of the latest models. According to an article cited from The Information, an internal Microsoft document instructed Azure salespeople to inform customers that Microsoft can provide more services compared to OpenAI. The relationship between Microsoft ( MSFT) and OpenAI is becoming intricate. Filmstax/iStock via Getty Images The Ambiguous Strategic Relationship between Microsoft and OpenAI ![]()
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