Microsoft and OpenAI have resolved a significant dispute just before Microsoft’s third-quarter earnings announcement. In a recent podcast, Microsoft CEO Satya Nadella emphasized AI’s central role in future growth, describing himself as a “peacetime CEO.” The new agreement lifts previous restrictions that limited OpenAI’s fundraising since 2019. This allows OpenAI to transition from a nonprofit to a for-profit entity, enhancing CEO Sam Altman’s ability to secure crucial deals and bolster resources for ambitious data center projects valued at $500 billion over the next decade. Despite restructuring, OpenAI’s nonprofit continues to govern the new for-profit arm, OpenAI Group PBC. The deal comes as ChatGPT’s user base surged to approximately 800 million weekly users, necessitating additional computing capabilities. While Microsoft retains a 27% stake and certain rights until 2032, Altman’s salary remains unchanged at $76,000, and he will not receive equity in the updated structure. Microsoft shares increased by about 2% post-announcement.
Source link
