Openai

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Hello everyone! A belated Happy New Year! I’ve been off writing the next cover story of Fortune magazine. You can read it online There’s so much to unpack about ChatGPT—and about Microsoft’s expanded But here’s a question I’ve been thinking about: There’s an old saying in business that if you don’t know who the fool is in a transaction, it’s you. (Actually, the old saying is usually expressed in far less polite language, but Eye on A.I. aims to be a family publication.) In the Microsoft-OpenAI deal, who is the fool? The answer depends a lot on exactly how valuable you think ChatGPT and the other generative A.I. technologies that OpenAI currently has in its portfolio, such as text-to-image generator DALL-E 2, are, and how close you think OpenAI is to achieving its stated mission of artificial general intelligence (AGI)—which the company defines as autonomous systems capable of outperforming humans at most economically-valuable work. First, a few details about the deal: According to sources familiar with the deal who spoke to us and documents Fortune, Microsoft is investing $10 billion in OpenAI and the transaction values the company at close to $29 billion. In exchange, Microsoft is getting the right to 75% of OpenAI’s profits until it earns back this $10 billion plus an additional $3 billion it has already invested in the company–$1 billion in 2019, and another $2 billion which it quietly put into OpenAI in 2021. After that, Microsoft will be entitled to a further 49% of O...