Actually this is going to be great for Microsoft.

By cutting its other revenue streams OpenAI has lost all of its leverage.

So now will shrink to being effectively an external dev team for Bing / Windows.

No, it will switch to being something like Micorsoft Cambridge. AKA only for R&D

Very true. And to be fair Microsoft does have a great reputation for research.

It really is a massive change in direction and a lost opportunity to set their own course.

Huh? Last time I checked I'm paying OpenAI for my Chatgpt plus subscription, not msft

ChatGPT Plus was never intended to be OpenAI's main revenue stream. The real cash is in the GPT API, which they're currently making good money on, but which also directly competes with a GPT API offered by Azure.

OP might have a point: if OpenAI declines, devs might prefer the Azure API over the OpenAI API for factors like stability, quality, response time, better integration with existing Azure stack, etc.

Microsoft owns the GPUs.

https://news.microsoft.com/source/features/ai/openai-azure-s...

https://www.semafor.com/article/11/18/2023/openai-has-receiv...

> n familiar with the matter said Microsoft CEO Satya Nadella believes OpenAI’s directors mishandled Altman’s firing and the action has destabilized a key partner for the company. It’s unclear if OpenAI, which has been racking up expenses as it goes on a hiring spree and pours resources into technological developments, violated its contract with Microsoft by suddenly ousting Altman.

> Microsoft has certain rights to OpenAI’s intellectual property so if their relationship were to break down, Microsoft would still be able to run OpenAI’s current models on its servers.

I bet if Microsoft leaves anothe tech giant would be more than glad to provide some GPUs

To the people running OpenAI? I suppose in the same way you’d invest in a developing country where your investment was always at risk of a dictator saying you were no longer an investor. Just hire OpenAI engineers away and buy stability. Let the board try to make a better offer with no resources of their own. I do not doubt there is a small cohort who drinks the aligned safety koolaid; for everyone else, there is cash and equity.

Citation: https://www.semianalysis.com/p/microsoft-swallows-openais-co... ("Microsoft Swallows OpenAI’s Core Team – GPU Capacity, Incentive Structure, Intellectual Property, OpenAI Rump State")

Your $20/mo isn’t covering their costs. They sought additional financing.

Google is fucking popping the champagne

MS has already gotten a lot out of OpenAI... who knows, the next steps could be OpenAI focusing more on R&D and not products like a good non-profit. ChatGPT is handed over to MS and merged into Bing. Anything could happen.

You think Microsoft's investment is going up in flames because OpenAI is moving forward without Sam?

Microsofts CEO doesn’t seem too happy about the board.

Billions... of AzureBucks!!!

:-)

The amount of cash that Microsoft has paid to OpenAI is relatively small, much less than the $13B number that gets thrown around.

And I'm sure they're getting their money's worth. E.g. the last time I heard or thought of Bing (outside of the ChatGPT context) was years ago. Now I see it all the time. That's worth $$$$$ to them.