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OpenAI and Microsoft extend partnership

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Re: OpenAI and Microsoft extend partnership

#41

Post by roflyear »

ckastner wrote: post #19
Closi wrote: post #14

Earlier quoted context omitted.

The cap is 100x, so assuming Microsoft is investing billions in a current valuation of $29 billion as rumoured, the cap will only really come into place once OpenAI becomes the most valuable company in the world.

It must have been in the first round [1], but leaves open the question of whether this is still the case: > Returns for our first round of investors are capped at 100x their investment (commensurate with the risks in front of us), and we expect this multiple to be lower for future rounds as we make further progress. [1] https://openai.com/blog/openai-lp/

Isn't this a wild cap? I'm not an expert but I am aware of private deals that are less than 10x for similar structures.

Re: OpenAI and Microsoft extend partnership

#42

Post by cableshaft »

jacooper wrote: post #40

Microsoft is handling the AI revolution extremely well. They see the potential brand damage that comes with a such a product, so they probably just hold less than 50% of the company, to be able to say "this is not us". Which then allows openAI to experiment and wow people, while google is anxious about showing 10% of its crazy AI capabilities to avoid potential PR disasters.

What are you talking about? All you have to do is make an A.I. robot dance and crack wise, and your golden. At least that's what the game Borderlands taught me.

Re: OpenAI and Microsoft extend partnership

#43

Post by dorkwood »

drexlspivey wrote: post #34
Closi wrote: post #14

Earlier quoted context omitted.

The cap is 100x, so assuming Microsoft is investing billions in a current valuation of $29 billion as rumoured, the cap will only really come into place once OpenAI becomes the most valuable company in the world.

How does this cap work in practice? If I bought shares at $1 and someone wants to buy them from me at $200 what happens?

They keep it, but it goes to the non-profit arm of their business.

“But any returns beyond that amount… are owned by the original OpenAI Nonprofit entity.”

https://openai.com/blog/openai-lp/

Re: OpenAI and Microsoft extend partnership

#46

Post by mft_ »

koolba wrote: post #38
IncRnd wrote: post #33

Earlier quoted context omitted.

I asked a question of chatgpt. --- Create a PR release in 10 paragraphs about Microsoft extending their partnership with OpenAI, by investing another $3.2 billion. Paragraph 1: Microsoft is excited to announce that it is extending its partnership with OpenAI by investing an additional $3.2 billion. This partnership has been a key driver of innovation and progress in the field of artificial intelligence, and we are th…

> I asked a question of chatgpt. > Paragraph 8: Microsoft CEO Satya Nadella said, "We are excited to continue our partnership with OpenAI to drive innovation and progress in the field of artificial intelligence. This new investment will enable us to bring the benefits of AI to more people and organizations around the world." > Paragraph 9: OpenAI CEO Sam Altman said, "We are thrilled to be continuing our partnership…

In companies of Microsoft's size, the quotes are almost certainly layers away from (in this case) Satya having any input other than final signoff. The communications team will have written the text, including the quotes, and it will likely have gone through the hierarchy for review and approvals.

So genuinely, does it really matter whether the original much-reviewed PR-blah quote is written by a junior comms human, or an AI algorithm?

Re: OpenAI and Microsoft extend partnership

#47

Post by vxNsr »

bfeynman wrote: post #32
Tempest1981 wrote: post #21

> Azure’s unique architecture design has been crucial in delivering best-in-class performance and scale Is there something unique about Azure, which makes it well suited for AI?

Other than just marketing BS, probably lack of customers who use GPUs. Both AWS and GCP have capacity issues. The biggest factor is also that Google is a direct competitor and invented the technology even, so obviously they will not cannibalize themselves by giving google more money to train its own models.

That’s funny as the other commenter said, azure has had some crazy capacity issues, but maybe this is their benefit, they get first dibs.

Re: OpenAI and Microsoft extend partnership

#49

Post by Kuinox »

roflyear wrote: post #41
ckastner wrote: post #19

Earlier quoted context omitted.

It must have been in the first round [1], but leaves open the question of whether this is still the case: > Returns for our first round of investors are capped at 100x their investment (commensurate with the risks in front of us), and we expect this multiple to be lower for future rounds as we make further progress. [1] https://openai.com/blog/openai-lp/

Isn't this a wild cap? I'm not an expert but I am aware of private deals that are less than 10x for similar structures.

If they reach AGI, or more simply replace a chunk of workers with AIs, this isn't far fetched to reach these numbers.
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