Microsoft and OpenAI have solidified their partnership with a new definitive agreement, enhancing their collaboration in artificial intelligence (AI). Since 2019, they have focused on advancing AI responsibly and making its benefits widely accessible. The new agreement supports OpenAI’s transition to a public benefit corporation (PBC), with Microsoft investing approximately $135 billion for a 27% ownership stake. Key aspects include Microsoft’s exclusive intellectual property (IP) rights and Azure API exclusivity, which will remain until Artificial General Intelligence (AGI) is reached. An independent panel will verify AGI declarations, and Microsoft’s IP rights extend through 2032, encompassing post-AGI models. OpenAI can co-develop products with third parties, while Microsoft can pursue AGI independently. A revenue-sharing agreement will continue until AGI is verified. OpenAI also commits to significant Azure services purchases and has flexibility in providing API access to U.S. government clients, thereby laying a stronger foundation for future AI advancements.
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