Microsoft and OpenAI try to rebalance their relationship
OpenAI and Microsoft are renegotiating the terms of their partnership, which has been important to both companies. They aim to adjust their business arrangement, including Microsoft's stake in OpenAI and how they share future earnings. Both companies are working to be less dependent on each other while maintaining their collaboration.
Key Facts:
- OpenAI and Microsoft are in discussions to change their partnership agreement.
- Microsoft needs to approve OpenAI's plan to become a fully for-profit company.
- SoftBank might reduce its investment if OpenAI's restructuring isn't completed by year's end.
- The renegotiation affects Microsoft's 49% stake and future revenue sharing.
- Both companies seek changes, like OpenAI's right to choose other cloud providers beyond Microsoft.
- Microsoft currently uses OpenAI's technology but wants to prepare for the future when AI evolves.
- OpenAI wants a typical ownership structure and more flexibility with cloud services.
- The relationship remains important as both companies work to reduce mutual dependence but retain benefits from their collaboration.