According to media reports citing sources, artificial intelligence (AI) research company OpenAI is considering canceling the terms related to general artificial intelligence (AGI) with Microsoft to attract more investment. Under the existing agreement, when OpenAI implements AGI, Microsoft will not be able to use this technology. Whether OpenAI has reached AGI will be judged by the OpenAI board of directors.
This provision was originally intended to prevent AGI from being misused for commercial purposes, thus placing ownership of the technology in the hands of a nonprofit board of directors. OpenAI clearly states on its official website: "AGI is expressly excluded from all commercial and intellectual property license agreements."
However, this clause may limit the partnership between OpenAI and Microsoft. As OpenAI’s largest shareholder, Microsoft has invested more than $13 billion in it. If this clause continues to exist, it may reduce the possibility of Microsoft continuing to invest.
Although OpenAI currently leads the AI field, competitors are catching up quickly. The cost of developing advanced AI models is very high, and OpenAI needs more funds in the face of deep-pocketed rivals such as Google and Amazon.
According to previous media reports, OpenAI is far from achieving profitability. The company’s revenue this year is expected to be US$3.7 billion, with a loss of approximately US$5 billion.
People familiar with the matter said that OpenAI is considering removing this clause from the company structure, which would allow Microsoft to continue to invest in and access all OpenAI technologies after AGI is implemented. It is reported that OpenAI has not yet made a final decision, and the board of directors is discussing various options.
As part of the changes, OpenAI is discussing new terms with investors such as Microsoft, according to people familiar with the matter.
OpenAI completed a new round of financing this fall, raising US$6.6 billion in funding. At the same time, the company's valuation reached US$157 billion, almost double from the beginning of the year. When OpenAI employees sold their existing shares earlier this year, the company was valued at $86 billion.
As early as the end of August, when news broke of OpenAI’s new round of financing, multiple media broke the news that the company was considering changing its structure to make it more attractive to investors.
Judging from previous disclosures by the media, the restructuring plan discussed by OpenAI includes canceling the profit cap for investors, restructuring the core business into a for-profit welfare company, canceling the control of the non-profit board of directors, and giving the company CEO Altman equity.
OpenAI was founded in 2015 as a non-profit organization, and the company launched a for-profit subsidiary called OpenAILP in 2019. OpenAI currently offers investors shares through its for-profit subsidiary, which is governed by its non-profit board of directors.
According to the latest news, OpenAI’s restructuring plan also includes retaining an independent non-profit entity that will hold shares in the new public benefit company and may establish a trust fund. The non-profit entity will focus on OpenAI’s mission to benefit all humanity and provide access to related research and technology.