OpenAI and its multi-billion dollar 'bet' with Microsoft

The Financial Times reported on May 11 that two leading technology companies today, OpenAI and Microsoft (both from the US), are renegotiating the terms of a multi-billion dollar cooperation agreement.

This negotiation is considered key to paving the way for OpenAI - the developer of the ChatGPT application - to be able to issue an initial public offering (IPO) in the future, while still ensuring Microsoft access to the most advanced artificial intelligence (AI) models.

One of the key points of the negotiations was the stake Microsoft would receive in OpenAI's new for-profit business in exchange for the more than $13 billion it has invested in the company to date.

Sources familiar with the matter also said Microsoft is proposing to give up a portion of its stake in exchange for access to new technologies OpenAI develops after 2030.

The two sides are also reviewing the terms of a broader contract, first drafted when Microsoft invested $1 billion in OpenAI in 2019. Neither OpenAI nor Microsoft responded to requests for comment.

Last week, The Information reported that OpenAI told investors it would reduce its revenue share with its largest investor as the company ramps up its restructuring.

In January, Microsoft adjusted some terms of its agreement with OpenAI, after the corporation partnered with Oracle (USA) and SoftBank (Japan) to build new AI data centers in the US. The total investment for this project could be up to 500 billion USD./.

(Vietnam News Agency/Vietnam+)

Source: https://www.vietnamplus.vn/openai-va-van-cuoc-tri-gia-hang-ty-usd-voi-microsoft-post1038002.vnp