As we know, Microsoft and OpenAI are technology development partners, with OpenAI using Microsoft’s cloud technology to build its ChatGPT speech modeling platform, while Microsoft is using the ChatGPT LLM technology foundation to build Microsoft’s Copilot artificial intelligence platform.
In a new statement, the two companies said they are exploring a new agreement to be signed soon, which would allow OpenAI to transition from a nonprofit to a public benefit corporation.
Along with the MoU, OpenAI will also give a stake in the company worth $100 billion to the nonprofit that technically controls OpenAI’s decisions, to ensure that the transition from a nonprofit to a public benefit corporation can be as smooth as possible.
According to a New York Times report, with the existing agreement, Microsoft, which previously invested $13 billion in OpenAI, now holds 49 percent of the company’s current and future profits.
Most likely, this new agreement is to ensure the survival of OpenAI as a corporate entity, but at the same time allow Microsoft to recoup their OpenAI investment at a faster rate.
Currently, discussions are still ongoing between the two companies before the memorandum of understanding is signed soon.