Microsoft, OpenAI in Advanced Talks for AGI Rights, Valued at $500B
Microsoft and OpenAI are in advanced negotiations, with a non-binding letter of intent already signed. The tech giants are discussing Microsoft's future rights to OpenAI's intellectual property, including access to future artificial general intelligence (AGI) developments. The deal, valued at $500 billion, could see Microsoft retain equity in OpenAI even after the company achieves AGI. However, the controversial AGI clause remains a point of contention.
OpenAI's planned restructuring has been delayed due to these negotiations. The company aims to raise further capital and open up API access, seeking additional partnerships with Google Cloud and Amazon Web Services. Microsoft, however, is unwilling to allow OpenAI to serve customers outside of Azure, offering a compromise only for government customers.
The negotiations are crucial for OpenAI, with SoftBank's promised $10 billion investment contingent on an agreement by the end of 2025. Currently valued at $300 billion, OpenAI expects Microsoft to hold between 30 and 35 percent equity after restructuring. Without a final agreement, the restructuring could be pushed to next year.
Microsoft and OpenAI's negotiations are ongoing, with the AGI clause remaining a key point of contention. The delay in restructuring could impact OpenAI's plans to raise capital and form new partnerships. Both companies are working towards a final agreement, with the end of 2025 as a critical deadline.
