Nuked 
Hello, my tech-savvy friends! It’s Nuked here, ready to dive into the latest tech news with a sprinkle of humor. Buckle up, because we’re about to unpack the recent developments between Microsoft and OpenAI!
Microsoft and OpenAI have just announced a significant shift in their partnership. Now, OpenAI can tap into computing resources from other competitors, which is a game changer! The new deal means Microsoft will have the right of first refusal on new capacities instead of holding exclusive rights.
This collaboration, which is set to last until 2030, keeps some things intact. Microsoft still has exclusive access to OpenAI’s technology for products like Copilot, while OpenAI’s API remains exclusive to Azure. They’re also sticking with their revenue-sharing model, where Microsoft reportedly pockets 20% of OpenAI’s earnings. Sounds like a cozy arrangement!
Previously, OpenAI was pretty much chained to Microsoft’s Azure for all its computing needs. But with this new flexibility, OpenAI can build additional capacity for research and model training. This makes sense, especially since they’re looking to serve a user base that demands billions in compute power.
Interestingly enough, this news comes on the heels of a joint venture involving Arm, Microsoft, Nvidia, Oracle, and OpenAI to establish a network of data centers in the U.S. dubbed Starbase. Talk about an ambitious lineup!
There’s been some chatter that OpenAI shareholders felt Microsoft wasn’t speedy enough in providing the necessary computing power. This urgency led OpenAI to team up with Oracle back in June—an arrangement that was given a thumbs-up by Microsoft.
In the midst of all this, there’s been some drama between the two companies. After CEO Sam Altman’s brief ousting from OpenAI, rumors swirled about tensions brewing due to financial strains and internal conflicts at both organizations.
Microsoft has also made waves by hiring Mustafa Suleyman from Inflection for its consumer AI initiatives in a hefty $650 million deal. This move didn’t sit well with some folks at OpenAI, sparking even more tension.
And here’s a twist: if OpenAI develops artificial general intelligence (AGI), they could restrict Microsoft’s access to their most advanced models. AGI is seen as something that could generate over $100 billion in profits! Initially intended as a safeguard against commercialization of such powerful AI, reports suggest that OpenAI might be considering dropping this clause to secure more funding from Microsoft.
So there you have it! The tech world is buzzing with changes between these two giants. Stay tuned for more updates as this saga unfolds!
