""Microsoft and OpenAI have signed a nonbinding memorandum of understanding (MOU) for the next phase of our partnership," a joint statement reads. "We are actively working to finalize contractual terms in a definitive agreement." The shake-up comes amid a push at OpenAI to shift from a nonprofit entity to a for-profit organization. This requires approval from Microsoft, however, and the proposed agreement comes with a notable caveat."
"OpenAI revealed the nonprofit parent will still retain oversight of the company, taking an equity stake of around $100 billion. In a follow-up statement, chairman Bret Taylor noted this makes it "one of the most well-resourced philanthropic organizations in the world". The proposed changes come as Microsoft and OpenAI continue to drift apart in key areas. It's a talking point that's become a recurring theme over the last year, with both companies now essentially competing for customers."
Microsoft and OpenAI have signed a nonbinding memorandum of understanding to guide the next phase of their partnership while final contractual terms are being worked on. OpenAI is pursuing a shift from a nonprofit entity to a for-profit organization, a move that requires Microsoft's approval. The nonprofit parent will retain oversight and take an equity stake of around $100 billion, which Bret Taylor said makes it one of the most well-resourced philanthropic organizations globally. Microsoft and OpenAI have drifted apart and now effectively compete for customers. Microsoft has explored integrating third-party models and will pay Anthropic to bring its AI into Office 365 alongside OpenAI. OpenAI is also involved in the $500 billion Stargate Project with Oracle and SoftBank to build AI infrastructure.
Read at IT Pro
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