OpenAI plans to transition into a for-profit company, with Microsoft becoming a key player in the game.

2024-12-26 20:13:39

PANews reported on December 26th that OpenAI CEO Altman plans to transform OpenAI from a nonprofit organization into a for-profit company, with Microsoft being a key obstacle in this process. Microsoft has committed to invest over $13 billion in OpenAI and has significant influence in the restructuring. The core issues of the negotiations since October last year include: Microsoft’s ownership in the for-profit entity, whether it will continue to be the exclusive cloud service provider for OpenAI, the duration of Microsoft’s use of OpenAI’s intellectual property, and Microsoft’s right to extract 20% of the revenue from OpenAI. If OpenAI fails to complete the transformation within two years, investors can withdraw $7.2 billion and Interest, putting pressure on the company. In addition, OpenAI plans to buy back some employee shares after the transformation, which makes employees hope for a quick change.

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