Recent reports suggest tensions are rising between Microsoft and OpenAI over their partnership, primarily due to OpenAI’s impending transformation into a for-profit entity by year-end, driven by investor demands. OpenAI is under pressure to declare artificial general intelligence (AGI) before 2030 to possibly exit its partnership with Microsoft. As OpenAI prepares to address anticompetitive practices, Microsoft appears willing to maintain its relationship until 2030, despite losing exclusivity in hosting OpenAI’s cloud workloads after OpenAI’s recent $500 billion Stargate project announcement. Microsoft retains the “right of first refusal” for these services, potentially outsourcing them if conditions aren’t met. Both companies are reportedly in negotiations to extend their partnership beyond AGI, which could yield up to $100 billion in profit. With Microsoft ramping up its AI initiatives, including attracting talent from Google, both firms are poised for important discussions in the coming weeks. Stay tuned for updates on this high-stakes partnership.
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