Microsoft’s $10 billion investment in OpenAI not only positions the company to generate significant returns, but also improves its products and solidifies its position in the market. The deal includes license fees for OpenAI’s services in Microsoft’s products, with potential for incremental revenue. Additionally, OpenAI will use Microsoft’s Azure hosting services, resulting in substantial hosting fees for Microsoft. The company will receive 75% of the profits until the investment is repaid, and afterwards, the original investors and employees will share in the profits. This strategic deal benefits both parties and establishes Microsoft as a valuable player in the AI space.
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Former Twitch CEO and co-founder Emmett Shear has been named interim CEO of OpenAI, according to sources. This comes after negotiations over the potential return of Sam Altman, who was fired as CEO, failed. OpenAI’s nonprofit board, including Microsoft as its largest investor, refused to step down and reinstated Altman, prompting him to join Microsoft with former president Greg Brockman to lead a new advanced AI research team. Shear’s appointment as CEO of OpenAI, a surprising choice given his lack of experience in the field, comes amidst internal turmoil and a growing user base for the company’s ChatGPT service.
Former OpenAI CEO Sam Altman and co-founder Greg Brockman have been hired by Microsoft to lead a new advanced AI research team. This comes after Altman was fired from OpenAI and negotiations to bring him back failed. Microsoft CEO Satya Nadella expressed excitement about the new hires, stating that they will be provided with the necessary resources for success. Meanwhile, former Twitch CEO Emmett Shear has been named interim CEO of OpenAI. Microsoft has also formed a new advanced AI research team and recently developed its own custom AI chip and Arm-based CPU.
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