Microsoft and OpenAI are reportedly in advanced talks on a deal that would give Microsoft continued access to OpenAI’s technology after that company achieves artificial general intelligence (AGI).
Under the companies’ current deal, Microsoft would lose access to any new technology from OpenAI when that company’s board determines it has developed AGI, Bloomberg reported Tuesday (July 29).
This provision has been a barrier to OpenAI’s efforts to transform itself into a for-profit corporation, and a new agreement could help it move toward that goal, according to the report.
The companies could reach an agreement within weeks, although things could change because a deal has not been finalized, the report said, citing unnamed sources.
Reached by PYMNTS, Microsoft declined to comment on the report.
OpenAI did not immediately replied to PYMNTS’ request for comment.
The companies have been renegotiating their relationship since OpenAI announced its plans to become a for-profit company, according to the report.
Microsoft, which has invested about $13.75 billion in OpenAI, has blocked the move because of disputes about the size of its stake in the company and its access to OpenAI’s technology, the report said.
It was reported in September that OpenAI planned to restructure its core business into a for-profit benefit corporation that wouldn’t be controlled by its nonprofit board.
The planned restructuring would make the company more attractive to investors, as it would operate more like a typical startup.
OpenAI was founded in 2015 as a nonprofit AI research organization and added a for-profit entity called OpenAI LP as a subsidiary of the nonprofit.
It was reported in December that Microsoft and OpenAI had been in talks since October about how to restructure the AI firm.
At that time, it was reported that the talks centered on Microsoft’s equity stake in the for-profit entity; whether Microsoft would continue to be OpenAI’s exclusive cloud provider; how long Microsoft would maintain its right to use OpenAI’s intellectual property in its products; and whether Microsoft would continue to take 20% of OpenAI’s revenue.
In May, it was reported that OpenAI’s planned restructuring could help it go public, although the timing of an initial public offering would depend on the market and the company’s readiness.
Source: https://www.pymnts.com/news/artificial-intelligence/
