Openai and Microsoft like to present -Silicon Valley couple, but at the closed doors, it looks more and more like a puzzled and loving marriage. The two companies, which are linked by cash flow and an intertwined base, have been subjected to a turbulent negotiation that surrounds Openai’s desire for a shorter strap and the opportunity to become a non-profit company. Microsoft seems to be resistant to some of these goals. A new report now claims that Openai staff has prepared a “nuclear option”, in case negotiations are not as they want.
The Wall Street Journal reports that Openai can go to the Federal Government and accuse Microsoft, it is his own Sugar Daddy, of anti-Competitive practices. If this happened, Openai’s executives claim that they would look for a federal regulatory review of the terms of the contract between them and Microsoft, with the aim of identifying possible antimonopoly violations. For Microsoft, calling antimonopoli police could be the most extreme form of betrayal that exists. Is has been on the roadHe collected the pieces and became a very different company. Openai could also launch a media campaign to broadcast the dirty clothes of the duo in public.
The two companies have a fairly unique relationship that could make such a disastrous conflict. Microsoft does not have Openai directly and the startup is not technically seen in the giant of the software. But Microsoft provides cloud computing infrastructure needed to feed Openai and Microsoft tools, it gains a large percentage of Openai’s benefits until the startup refuses Microsoft’s initial investments. After paying the initial investment, Microsoft will retain a large participation in the company and will gain a certain percentage of Openai benefits until it reaches a plan. But again, because it is not technically owned by Microsoft, Openai continues to be (technically) its own organization.
Openai’s effort to become a non-profit company is allegedly fundamental to its long-term growth strategy, a strategy that could be strangled if Microsoft remains too well. The newspaper states that much of the struggle between the two companies seems to revolve around the continuous property of Microsoft by large parts of Openai’s business:
Companies are still disagreeing with the amount of Openai Microsoft if it becomes a public-benefit corporation. Microsoft currently calls for greater participation in the new company Openai is ready to give it, according to the people who knew this topic. Openai must complete the conversion by the end of the year, or risks losing $ 20 billion in funding.
They were Openai to light Microsoft, the resulting corporate battle could be one of the ages: a really ugly clay struggle between two of Silicon Valley’s most influential companies. However, it is unclear if we are in this phase. “We have a long -term productive collaboration that has provided surprising AI tools for everyone,” said representatives of the two companies at the Wall Street Journal in a joint statement. “Conversations continue and are optimistic, we will continue to build together in the coming years.” Gizmodo contacted Openai and Microsoft for more information.
