Why Did Microsoft Invest In OpenAI?
"Based on recent reporting by The Information and the Wall Street Journal, some very specific facts have been established:
OpenAI is the largest customer of Microsoft Azure, where it pays "favorable server rental rates compared to other customers."
Per The Information (emphasis mine), "several top Microsoft executives [during the period where they invested $10 billion in OpenAI] told colleagues they thought OpenAI’s business would eventually fail, even if its technology was good, according to a former manager who discussed it with them.""
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"several top Microsoft executives [during the period where they invested $10 billion in OpenAI] told colleagues they thought OpenAI’s business would eventually fail, even if its technology was good,
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As I discussed in last week's Friday premium column, OpenAI and Microsoft are currently negotiating over the terms under which it would allow OpenAI to convert to a for-profit entity, in which OpenAI is offering Microsoft...a reduction in its revenue share (down to 10%), less stock (33%, down from 49%