Microsoft & OpenAI:

OpenAI and Microsoft have agreed on a non-binding memorandum of understanding for the next stage of their collaboration. They are diligently working to solidify contractual terms into a concrete agreement. Both companies remain committed to providing top-tier AI tools to everyone, emphasizing safety as a shared priority.

Since 2019, Microsoft has invested $13 billion in OpenAI and shares in the profits from ChatGPT and its API. Microsoft also recognizes OpenAI as a competitor, permits it to use other cloud services for computational resources, and is increasing reliance on its own AI models.

During a company town hall on Thursday, Microsoft CEO Satya Nadella and AI chief Mustafa Suleyman pledged considerable investment in their own models. Suleyman remarked, “We aspire to develop world-class frontier models of any size in-house but will pragmatically use external models when necessary.”

OpenAI disclosed in a separate statement that its nonprofit parent entity will maintain control over the for-profit business, with an equity interest valued at over $100 billion as part of the agreement with Microsoft.

Other charitable organizations have expressed concerns about OpenAI’s novel restructuring strategy, leading the attorneys general of California and Delaware to initiate investigations. OpenAI announced, “We are actively engaging with the California and Delaware Attorneys General as part of enhancing our strategies, dedicated to promptly ensuring our tools are beneficial and secure for all, while prioritizing safety throughout the industry.”