Most of Microsoft’s $10bn funding in OpenAI has gone on cloud

A lot of Microsoft’s $10 billion funding in OpenAI is definitely tied up in cloud compute, in line with Semafor, citing individuals aware of the settlement. 

Redmond’s well-known multibillion-dollar funding was confirmed in January, barely a few months after the startup unleashed the general public preview of ChatGPT.

Now, it has been rumored that OpenAI acquired only a fraction of this heavy funding as usable money.

Does Microsoft affect OpenAI?

Whereas the division of Microsoft’s funding stays unclear, the reality is that the $10 billion funding has awarded Microsoft with a substantial (but unconfirmed) say in how OpenAI could function.

Semafor notes that, as a part of an ongoing settlement, Redmond has some rights to OpenAI’s IP, which implies it could nonetheless have the ability to use fashions like GPT-4 by itself servers within the occasion of a relationship breakdown.

Because the world ready for a weekend of enjoyable, OpenAI’s board late final week revealed that CEO Sam Altman can be fired. Subsequently, co-founder Greg Brockman additionally resigned.

It’s believed that Microsoft CEO Satya Nadella has instructed that Altman’s firing was mishandled. Nadella has since confirmed on X that “Sam Altman and Greg Brockman, along with colleagues, will probably be becoming a member of Microsoft to steer a brand new superior AI analysis workforce.”

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Nadella additionally famous: “We stay dedicated to our partnership with OpenAI.” Nonetheless, with Redmond’s acquisition of two of the startup’s co-founders and ongoing queries concerning the board’s resolution, not solely is the way forward for the partnership and funding being questioned but additionally the steadiness and safety of OpenAI extra usually. 

Neither Microsoft nor OpenAI has responded to TechRadar Professional’s request to substantiate or present extra context concerning the report on the cut up of the $10 billion funding – any feedback will probably be added right here. 


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