Microsoft is setup to create shareholder value. That's it. Both of them will eventually find it moot to advance tech so a few folks get richer.
You think the guy is gonna be a regular c suite exec?
They are going to be a special group with special rules. This is so they can build off the existing code base. Only msft has that openai ip.
If they go to Google or start their own thing it's rewrite or work off someone else's painting. Not to mention building out compute infrastructure.
Big loss of time. Go to msft, get special status, maybe even an exit clause with IP included. Easy win. Was always gonna be msft if not openai negotiated return. I just didn't realize that till satya threw them the offer that worked.
These guys didn't sign up to be cogs. Satya respects them.
Gpt4 is included in bing man... Bing creative mode and balanced mode both.
This is widely known. The investment included access to openai technology for integration in msft services.
Its not a traditional arrangement. This is also widely known. Its a complicated investment with a profitability sunset triggering return of equity to the nonprofit. Also included is technology transfer as long as the sunset doesn't trigger.
This is why Ilya felt comfortable to do it. He did many interviews where he explained this.
The original 2019 deal was described as:
> Microsoft and OpenAI will jointly build new Azure AI supercomputing technologies
> OpenAI will port its services to run on Microsoft Azure, which it will use to create new AI technologies and deliver on the promise of artificial general intelligence
> Microsoft will become OpenAI’s preferred partner for commercializing new AI technologies
The $10 billion deal was probably not making a ton of money for MSFT as it was 75% percent of profits, which are easy to get rid of, until they get 49% of the company.
Can you explain why MSFT would spend $10 B for either of these things if they just got OpenAI’s IP?
Its obvious that they have to redo less of the stack if the go to msft. At the very least, they already wrote everything to scale with azure.
With respect to IP... My comment was mostly suggesting they could enjoy privaledge to leave msft at some point in the future with IP with them.
How much of the source do they get to avoid rewriting on day 1 at msft? No idea. Could be all of it... But again... At least they already scaled into azure compute architecture and don't have to reinvent the wheel. That's not a small thing.
Not really debating it further. Seems really obvious to me that broadly speaking, for all kinds of reasons, probably access to source inckuded, they will be able to get up to speed substantially faster at msft vs anywhere else.
It's too speculative to be worse discussing in depth. We don't have enough details, but my broader assertion is more or less defensible imo. Others might disagree. Not worth a debate imo.
(edit: 'perpetual license to openai ip short of agi'
Not sure of the details. This is was I see being written.
https://stratechery.com/2023/openais-misalignment-and-micros...'