Microsoft nears OpenAI agreement for ongoing tech access
While the tone of the talks has been positive, some of the people cautioned that the deal is not finalised and could hit new roadblocks
Microsoft is in advanced talks to land a deal that could give it ongoing access to critical OpenAI technology, an agreement that would remove a major obstacle to the start-up’s efforts to become a for-profit enterprise.
The companies have discussed new terms that would let Microsoft use OpenAI’s latest models and other technology even if the start-up decides it has reached its goal of building a more powerful form of AI known as artificial general intelligence (AGI), according to two people familiar with the negotiations. Under the current contract, OpenAI attaining AGI is seen as a major milestone at which point Microsoft would lose some rights to OpenAI technology.
Negotiators have been meeting regularly, and an agreement could come together in a matter of weeks, according to three people with knowledge of the situation, who requested anonymity to discuss a private matter. OpenAI Chief Executive Officer Sam Altman and Satya Nadella, his Microsoft counterpart, discussed the restructuring at the Allen & Co conference in Sun Valley, Idaho, earlier this month, two of the people said.
While the tone of the talks has been positive, some of the people cautioned that the deal is not finalised and could hit new roadblocks. Moreover, OpenAI’s restructuring plans face other complications, including regulatory scrutiny and a lawsuit filed by Elon Musk, an early backer who split with the company and accused the start-up of defrauding investors about its commitment to its charitable mission. (OpenAI has pushed back at Musk’s claims and said the billionaire is trying to slow down the company.)
Negotiations over OpenAI’s future as a profit-company have dragged on for months. Microsoft, which backed OpenAI with some US$13.75 billion and has the right to use its intellectual property, is the biggest holdout among the ChatGPT maker’s investors, Bloomberg previously reported. At issue is the size of Microsoft’s stake in the newly configured company.
The talks have since broadened into a renegotiation of their relationship, with the software maker seeking to avoid suddenly losing access to the start-up’s technology before the end of the current deal, which expires in 2030.