zlacker

>>JimDab+(OP)
Have to give it to Satya. There's a thin possibility that Microsoft would have to write-off its whole $10B (or more?) investment in OpenAI, but that isn't Satya's focus. The focus is on what he can do next. Maybe, recruit the most formidable AI team in the world, removed from the shackles of an awkward non-profit owning a for-profit company? Give enough (cash) incentives and most of OpenAI employees would have no qualms about following Sam and Greg. It will take time for sure, but Microsoft can now capture even a bigger slice of THE FUTURE than it was possible with OpenAI investment.

>>shubha+e4
This might have been a reasonable and workable solution for all parties involved.

Context:

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1.1/ ILya Sukhar and Board do not agree with Sam Altman vision of a) too fast commercialization of Open AI AND/OR b) too fast progression to GPT-5 level

1.2/ Sam Altman thinks fast iteration and Commercialization is needed in-order to make Open AI financially viable as it is burning too much cash and stay ahead of competition.

1.3/ Microsoft, after investing $10+ Billions do not want this fight enable slow progress of AI Commercialization and fall behind Google AI etc..

a workable solution:

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2.1/ @sama @gdb form a new AI company, let us call it e/acc Inc.

2.2/ e/acc Inc. raises $3 Billions as SAFE instrument from VCs who believed in Sam Altman's vision.

2.3/ Open AI and e/acc Inc. reach an agreement such that:

a) GPT-4 IP transferred to e/acc Inc., this IP transfer is valued as $8 Billion SAFE instrument investment from Open AI into e/acc Inc.

b) existing Microsoft's 49% share in Open AI is transferred to e/acc Inc., such that Microsoft owns 49% of e/acc Inc.

c) the resulted "Lean and pure non-profit Open AI" with Ilya Sukhar and Board can steer AI progress as they wish, their stake in e/acc Inc. will act as funding source to cover their future Research Costs.

d) employees can join from Open AI to e/acc Inc. as they wish with no antipoaching lawsuits from OpenAI