Microsoft, OpenAI reach non-binding deal to allow OpenAI to restructure

By Krystal Hu and Stephen Nellis

(Reuters) -Microsoft and Openai said in a statement on Thursday that Openai said that they have signed an agreement for new relationship terms that will allow Openai to be restructured to a non-profit company and mark a new stage of the highest profile partnerships to finance the frenzy of the chatgpt.

Details of the new commercial regulations were not explained, but companies said they are working to conclude the conditions of a final agreement. This proceeds one step further in Openai’s long -term negotiations with Microsoft, because the first tries to increase capital under a more widespread governance structure and eventually open to the public to finance the development of artificial intelligence.

In 2019, Microsoft invested Openai $ 1 billion and $ 10 billion at the beginning of 2023. According to their previous agreements, Microsoft had special rights to sell Openai’s software tools through the Azure Cloud Computing platform and chose access to startup technology.

Microsoft was once appointed as the only calculation provider of Openai, but it reduced his hold of Oracle with Oracle to allow Oracle to follow his own data center project Stargate, including signing long -term contracts of $ 300 billion.

Openai’s income remains billions, looking for more traditional institutional structures and partnerships with additional cloud providers to expand sales and secure the information processing capacity to meet the demand.

In the meantime, even if Microsoft declares that Openai models reach human -like intelligence, they want continuous access to Openai’s technology – the current partnership is a milestone that will end under current conditions.

Openai, under the current conditions, the snow-free arm will take more than 100 billion dollars-$ 500 billion in the private markets will receive approximately 20% of the valuation of $ 500 billion-Openeai’nin current profit, according to a note of the president of the organization, Bret Taylor’ın, said it would make the best-financed profit.

Companies have not announced how much Openai Microsoft will have, or whether Microsoft has a special access to Openai’s latest models and technology.

Since California and Delaware’s lawyers should approve Openai’s new structure, regulatory barriers remain. The company hopes to complete the transformation by the end of the year or to carry billions of losing billions of funds connected to this timeline.

Microsoft and Openai compete on products ranging from consumer chat boots to AI vehicles for businesses. Microsoft is also trying to improve its own AI models to reduce the dependence on Openai’s technologies.

(Reporting by Zaheer Kachwala in San Francisco, Krystal Hu and Stephen Nellis;