In today’s rapidly evolving landscape, few advancements captured the world’s attention. But the loudest buzz came from none other than the AI. Its transformative potential shattered conventional boundaries, unveiling a new frontier of exploration and innovation.
While the giants of industry certainly didn’t let this opportunity slip away, it’s the audacious startups that have truly taken the game to the next level, seizing the spotlight with what they can offer.
What’s even more exciting was the combined expertise and fresh ideas of giants like Microsoft and trailblazers such as OpenAI, potentially paving the way to shape a future we could only dream of.
Now, the question is “how far can they go,” which can only be understood by knowing the relationship between Microsoft and OpenAI.
A Closer Look Into the Microsoft-OpenAI Relationship
OpenAI, a nonprofit company that created ChatGPT, isn’t owned by Microsoft. But it has a capped profit arm, allowing the tech giant to enter a strategic partnership in 2019. The subsidiary was a solution to the extensive capital requirement that the project needed to achieve its core mission of building a safe AGI that will benefit everyone.
Its devised structure has a Board of Directors originally from the OpenAI nonprofit team, ensuring full control over the involved parties, such as investors like Microsoft.
Now, the tech giant owns a minor part of OpenAI Global, LLC, which functions as a for-profit subsidiary. As you may have noticed, it sits at the lowest part of the structure, hinting that Microsoft doesn’t control OpenAI activities but the other way around.
Also, Microsoft didn’t announce its exact investment amount in OpenAI. However, it was expected to own 49% of the company if the $10 billion deal proceeded, positioning it at a $29 billion valuation.
The only thing confirmed was their partnership is getting stronger, which is currently in its third year. It’s easy to see why, as the two benefit from each other. OpenAI receives the capital and computing power for its projects. On the other hand, Microsoft gets access to GPT-4 and integrates AI products into its search engine.
It includes the ChatGPT-powered Bing that gained the search engine a 10x increase in App Store downloads, power Bing Image Creator using Dall-E, and more.
Elon Musk Questions the Microsoft-OpenAI Relationship
In the latest interview with CNBC, Elon Musk openly discussed his frustrations about the partnership between Microsoft and OpenAI concerning control and change of structure. But that’s only a part of his story.
His disappointment can be traced back to the early days of OpenAI, claiming that his investment was the key for the startup to exist. He also adds that he came up with its name OpenAI, symbolizing an open-source and a non-profit model, which is the exact opposite of Google, known for having a closed-source and for-profit structure.
It wasn’t the name he was all concerned with but the turn of events, causing it to depart from its original purpose. Additionally, with the changes that happened, he thinks that Microsoft is currently controlling OpenAI.
A few months back, he already called it out for the same concern, showing regret for starting the company. But there’s no going back.
On the other hand, Microsoft’s CEO Satya Nadella denies the allegations of Musk.
“I have a lot of respect for Elon and all that he does. I’d just say that’s factually not correct. As I said, OpenAI is very grounded in their mission of being controlled by a non-profit board. We have a non-controlling interest in it. We have a great commercial partnership in it.”
Satya Nadella
There’s evidently a gap between the two, as they have varying perspectives on the use of AI. But one thing is certain; they will keep pushing the boundaries of this technology, creating a mix of excitement and apprehension as we witness its progress.
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