Microsoft in Talks to Secure Continued Access to OpenAI Tech

• Microsoft negotiates with OpenAI to maintain access to advanced AI technology post-AGI.
• OpenAI’s public-benefit corporation transition requires Microsoft’s approval, alongside equity stake discussions.
• Elon Musk’s lawsuit accuses OpenAI of abandoning its mission for corporate profit.

Microsoft is engaged in advanced negotiations with OpenAI to ensure continued access to the AI startup’s cutting-edge technology, including its latest models, even if OpenAI declares it has achieved Artificial General Intelligence (AGI) surpassing human intelligence.

The discussions aim to revise a clause in their existing contract that would limit Microsoft’s rights to OpenAI’s advanced technology upon reaching AGI. Regular meetings between negotiators suggest a deal could be finalized within weeks.

The talks also cover Microsoft’s future equity stake in OpenAI and the startup’s transition to a public-benefit corporation, which requires Microsoft’s approval. OpenAI’s need for Microsoft’s support underscores the complexity of their partnership, which has been pivotal for both companies.

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OpenAI, co-founded by Elon Musk and Sam Altman in 2015, faces additional scrutiny. Musk, who left before OpenAI’s rise to prominence, is suing the company, alleging it has deviated from its mission “to develop AI for the good of humanity, not corporate profit.” In the meantime, OpenAI is diversifying its cloud capacity and has resorted to competitors such as Google, Oracle, and Core Weave, limiting its dependency on the infrastructure.

Another question investors watch closely is Microsoft, as it plans to report June-quarter revenues Wednesday, since the software giant has a partnership with OpenAI. The result of such negotiations would redefine how their cooperation happens, affecting the AI strategy of Microsoft and the functioning autonomy of OpenAI.