Microsoft is reportedly in advanced negotiations with OpenAI for the latest deal that would provide continued access to its cutting-edge technology.
If the ChatGPT manufacturer accomplishes artificial general intelligence (AGI), it would simplify OpenAI’s transition process to become a fully commercial enterprise.
As per Bloomberg, both companies are engaged in regular talks and could finalise an agreement in the coming weeks.
While the negotiations have been positive, other hurdles may emerge in the form of Elon Musk's lawsuit to impede the company’s for-profit transition.
Currently, OpenAI is structured as a mission-driven non-profit that supervises a limited for-profit organisation.
This structure never stopped the company from securing billions of investments and functions like a traditional tech company, but it still aims to overcome its limitations.
The American tech giant wants a larger equity in the restructured company and appears to secure its access to OpenAI’s tech beyond the ongoing deal, which ends in 2030 or whenever OpenAI achieves AGI.
It is pertinent to mention that Microsoft has already built its Azure OpenAI Service around the smaller platform’s models and has incorporated the startup’s tech into its native services.
If OpenAI announces that it has achieved AGI and block access, Microsoft would lose a major asset.
Moreover, OpenAI reportedly aims to ensure that Microsoft installs OpenAI’s technology safely, especially as it approaches AGI.
Notably, discussions are underway between both the firms regarding an equity stake for Microsoft in the low- to mid-30% range.
