After a new round of financing and the change in the startup’s statute, the Microsoft started to hold 27% of the company’s capital OpenAi. The announcement was made this morning by both groups, news “Financial Times”.
Microsoft’s 27% stake will be valued at around $135 billion (€116 billion), almost ten times more than the 13.75 billion (11.79 billion euros) that the technology giant has invested in OpenAI since 2019.
As part of the new agreement between the two partners, OpenAI has committed to acquire 250 billion dollars (214 billion euros) in additional computing capacity platform Azure from Microsoft, dedicated to cloud computing. The news was well received in Wall Street and, with Microsoft shares rise 2.65%in the early afternoon.
Revised collaboration terms
The terms of collaboration between the two companies were revised to guarantee greater autonomy for each. The initial agreement provided that, if OpenAI managed to achieve so-called general artificial intelligence (IAG) — a level that equates artificial intelligence with human intellectual capabilities —, a startup could restrict Microsoft’s access to these models.
The agreement also allows investors such as SoftBankby Masayoshi Son, and venture capital funds Thrive CapitalAndreessen Horowitz e Sequoia Capital hold shares in OpenAI. Previously, they were only entitled to a portion of the profits.
Revamped OpenAI Statutes
In the new agreement, Microsoft maintains intellectual property rights about OpenAI models and products — excluding consumer hardwaresuch as AI devices designed by Sir Jony Ive — until 2032including those that reach the IAG level.
They remain, however, physical products excludedas OpenAI is currently developing consumer AI-powered connected devices.
OpenAI said its foundation will initially focus on finance health researchas well as in technical solutions for “AI resilience”designed to make the models more robust.
A Microsoft has had a relationship with OpenAI since 2016through an initial agreement to provide computational capacity in the development of its AI models. Since 2019, the Redmond, Washington-based company has been regularly investing in the creator of ChatGPTtotaling more than 13 billion dollars.
This Tuesday’s announcement is part of in a reformulation of OpenAI’s statuteswhich will be transformed into a Public Benefit Corporation (PBC) — a private company with objectives of public interest, in addition to financial ones. As part of this change, the non-profit entity that previously controlled OpenAI will receive shares in the new company, valued at more than 100 billion dollars (85 billion euros).
The new legal structure will still have to be approved by the attorneys generals from the states of Delaware and California.
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