zlacker

>>skille+(OP)
If they join Sam Altman and Greg Brockman at Microsoft they will not need to start from scratch because Microsoft has full rights [1] to ChatGPT IP. They can just fork ChatGPT.

Also keep in mind that Microsoft hasn't actually given OpenAI $13 Billion because much of that is in the form of Azure credits.

So this could end up being the cheapest acquisition for Microsoft: They get a $90 Billion company for peanuts.

[1] https://stratechery.com/2023/openais-misalignment-and-micros...

>>breadw+17
> Microsoft hasn't actually given OpenAI $13 Billion because much of that is in the form of Azure credits

To be clear, these don't go away. They remain an asset of OpenAI's, and could help them continue their research for a few years.

>>JumpCr+sk
Sure, the point is that MS giving $13B of its services away is less expensive than $13B in cash.

>>pauldd+5O
Azure has ~60% profit margin. So it's more like MS gave $5.2B in Azure Credits in return for 75% of OpenAI profits upto $13B * 100 = $1.3 trillion.

Which is a phenomenal deal for MSFT.

Time will tell whether they ever reach more than $1.3 in profits.

>>nojvek+jb1
I highly doubt it is that simple. It's an opportunity cost of potentially selling those same credits for market price.

>>nights+7e1
OpenAI is a big marketing piece for Azure. They go to every enterprise and tell them OpenAI uses Azure Cloud. Azure AI infra powers the biggest AI company on the planet. Their custom home built chips are designed with Open AI scientists. It is battle hardened. If anyone sues you for the data, our army of lawyers will fight for you.

No enterprise employee gets fired for using Microsoft.

It is a power play to pull enterprises away from AWS, and suffocating GCP.