zlacker

Their alternative is to start a new AI company.

At this point in time a new AI company would be bottle-necked by lack of NVIDIA GPUs. They are sold out for the medium term future.

So if Sam and Greg were to start a new AI company, even with billions of initial capital (very likely given their street cred) they would spend at a minimum several months just acquiring the hardware needed to compete with OpenAI.

With Microsoft they have the hardware from day one and unlimited capital.

At the same time their competitor, OpenAI, gets most of the money from Microsoft (a deal negotiated by Sam, BTW).

So Microsoft decided to compete with OpenAI.

This is the worst possible outcome for OpenAI: they loose talent, pretty much loose their main source of cash (not today but medium to long term) and get cash rich and GPU-rich competitor who's now their main customer.

>>kjksf+(OP)
> So Microsoft decided to compete with OpenAI

They already do, though, has everyone forgot they got a Microsoft Research division?

>>sekai+Y1
Nope, VirtualWiFi looked promising in 2006.

>>kjksf+(OP)
They could get a infra deal with AWS, Google, NVidia or AMD even :-).

Or they write the AI that runs on your M3

That said the Microsoft offer came quickly than Amazon can deliver a 3090 to your house so…

>>quickt+yf
Would have been amazing if they joined Intel. No tsmc bottleneck, Intel probably having trouble offloading their arc gpus, etc

>>idonot+Zp
Some components of some Intel CPUs are made by TSMC. So, I’m not convinced that there wouldn’t be “TSMC bottleneck”.