Microsoft is ready to go on high negotiations with Openaai about the future of its multibillion dollar alliance, while the chatt manufacturer tries to convert into a profit-oriented company.
The software giant has thought about stopping complex discussions with the AI start of USD 300 billion if the two sides still cannot agree critical problemsLike the size of the future share of Microsoft to Openaai, according to people with knowledge of their plans.
In this eventuality, Microsoft would rely on his existing trade contract to preserve access to Openais technology by 2030, unless there was an offer, according to these people, which corresponded to the same or better than its current agreements.
However, these people emphasized that Microsoft worked in “faith and faith”, and both parties met daily to try to put a plan on the table and were confident that a deal could be achieved.
“We have a long-term productive partnership that has delivered for all amazing AI tools”, Microsoft and Openai said in a joint explanation. “The talks take and we are optimistic that we will continue to assemble in the coming years.”
Openaai needs a contract with Microsoft To complete a non -profit origins to a more conventional corporate structure, which, according to funds, will activate funds and bring an initial public offer onto the market.
Microsoft must approved the Switch by the end of the year or Openai risks if other investors, including soft bank, lose billions.
In discussions in the past year, the two sides fought for how much equity in the restructured group Microsoft should receive in exchange for more than $ 13 billion that she has previously invested in Openaai. The discussions about the stake between 20 and 49 percent.
The couple also revised the conditions of his wider contract, which was first designed when Microsoft invested 1 billion USD in Openaai in 2019.
As part of his current agreement, Microsoft has the exclusive right to sell access to Openais models and receives a share of 20 percent in income of up to $ 92 billion.
Microsoft hesitates to enable continuing access to Openais technology or its share in the group’s income, such as several people who are close to the discussions.
The Wall Street Journal reported this week that Openai had considered a “nuclear option” to accuse Microsoft of competitive behavior towards his partnership.
“Holding Out is the nuclear option of Microsoft … and they only do Openai sweat,” said one person near Openaai, who also made access to the IP of the Chatgpt Makers for Microsoft to store AI against competitors such as Google and Meta.
A person near Microsoft said that the “status quo” was acceptable for the Big Tech company and it was “satisfied with the current contract” and prepared to carry it out by 2030.
“The market takes care of how much sales Microsoft does … not about how much equity in Openaai.
“The question is: What does Microsoft get in return to give up the right to these income?”
Microsoft has already started diversify From Openai models in the past few months as part of the conviction of CEO of Satya Nadella, that leading models are “marketed”-or less worth selling to sell AI-capable applications and digital assistants that are based on them.
In May the software giant provided the Xai model of Elon Musk for its cloud computing customers.
“Openaai is no longer necessarily the leader,” said one person near Microsoft and noticed the competition between competing AI model manufacturers.
Several other elements of the current contract are also due for negotiations, including the exclusive rights of Microsoft, Openais software for sale via the Azure Cloud Computing Service. to provide his right to initial refusal to provide Openai computing infrastructure; And the software giant’s access to the intellectual property of the AI group before it reaches “artificial general intelligence”.
The latter clause refers to one point where Openai creates a “very autonomous system droppedas the financial times previously reported.
Sam Altman, Chief Executive by Openai and his Chief Financial Officer Sarah Friar, also said that the company had difficulties accessing to the execution of Chatgpt that required computing power that has driven to 500 million weekly users worldwide while new models are trained and products are started.
Two former Microsoft executives who were involved in the management of Openai bill requirements indicated that the relationship between the groups was significantly equipped with the problem, especially with regard to Altman’s requirements for faster access to even more infrastructure.
Even if the problems are solved, the transaction must be approved by General Prosecutor in Delaware and California. The conversion is also subject to a legal challenge of Xai Chief Musk, which was supported by former Openai employees.
An agreement with Microsoft is of crucial importance for Openai. Investors in the last two financing rounds of the AI Group have approved provisions in which the company has to successfully convert to a non-profit company, or their stock investment will be owed.
If this process is delayed or abandoned, investors have the opportunity to get part of their investments back. Softbank, which led the last round, could reduce its investment of $ 30 billion by USD 10 billion if the conversion has not been completed by the end of the year. People near Openaai are confident that investors would keep their obligations, even if the transaction is delayed.
A veteran in Silicon Valley near Microsoft said that the software giant knows that this is not your problem to find out, technically it is the problem of Openaai to have negotiations at all. “
