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OpenAI and Microsoft extend partnership

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Re: OpenAI and Microsoft extend partnership

#161
post #91

Earlier quoted context omitted.

> you should consider reading more about Patagonia I'd be open to reading more. I think they are largely a good company but feel like this move was more of a tax dodge and to ensure generational wealth than for altruism. But I am open to being wrong about it. But everyone involved in OpenAI doesn't give me warm and fuzzy feelings at all. I admit it's largely cynicism until I know more. But there isnt enough time in t…

Company with decades of going way, way out of norms to operate as an ethical organization at virtually every level does an additional virtuous task: oh ya that’s a tax dodge

It is, Im not saying they are 100% evil like some companies we discuss on HN. But this was a tax dodge. [1]

[1] https://fortune.com/2022/09/16/patagonia-founder-legal-tax-l...

Re: OpenAI and Microsoft extend partnership

#162
post #152

Earlier quoted context omitted.

Oh, I think it's way more of a marketing scam than the Patagonia thing, which I think was kind of legit. This one doesn't even sound legit, even if they do exactly what they say... which is almost nothing. they aren't even really saying they'll do anything different with regard to profit. Patagonia, I think the founder and his heirs really have given up lots of profit they could have had, immediately, to dedicate it…

The Patagonia thing was not legit at all according to Adam Hates Everything: https://www.youtube.com/watch?v=0Cu6EbELZ6I EDIT by "not legit" I mean "not authentic"

Thank you, I'm interested in this!

If anyone has a good written text account critical of the Patagonia thing, I'm interested in that too; video isn't my preferred consumption format.

Re: OpenAI and Microsoft extend partnership

#163

Let me translate this blog post out of corpspeak...: OpenAI has agreed to use Azure exclusively and for free, in return for Azure massively scaling up it's GPU capacity (which OpenAI was hitting before, hence threatening to move). In return, OpenAI gives an extensive license to Microsoft to use ChatGPT in Bing (and other products). Now why couldn't the blog post have just said that rather than hiding all the details?

Because they didn't want to openly say "Microsoft gives us GPUs and allows us to use them for free, hence practically buys us. In return we almost exclusively license what we produce to them, for free."

Because it looks bad. Microsoft wants to be seen in a different light, and OpenAI wants to be perceived as an open, academic, capped-profit for a noble reason collective.

It's all smoke and mirrors.

Re: OpenAI and Microsoft extend partnership

#164

Let me translate this blog post out of corpspeak...: OpenAI has agreed to use Azure exclusively and for free, in return for Azure massively scaling up it's GPU capacity (which OpenAI was hitting before, hence threatening to move). In return, OpenAI gives an extensive license to Microsoft to use ChatGPT in Bing (and other products). Now why couldn't the blog post have just said that rather than hiding all the details?

What happens to the non-profit aspect of OpenAI as a result of this deal? How much money are we talking about, that is, what's the scale of the deal? Do you have any proof that building on Azure will work for OpenAI?

I don't even understand how there IS a non-profit aspect to OpenAI at this point?

Honestly DeepMind seems to be doing far more important work. Health etc.

Re: OpenAI and Microsoft extend partnership

#165
post #151
post #103

Earlier quoted context omitted.

> Making the best developer tools for free or at least close to free The bastards! Making and releasing high quality developer tools. We have to stop them! Has MS actually EEE'd anything in the last 25 years? I legit can't think of a single formerly-open thing that's been Microsofted via their own extensions.

The methods are different but the strategy is the same. They have used this strategy with Windows Subsystem for Linux (WSL), VSCode + extensions, Winget, Microsoft Teams, GitHub, and now OpenAI. Microsoft can afford to maintain all these offerings for free whilst competitors suffocate and struggle to compete with their paid offerings. You can't compete with free, especially when there is a company who can afford to r…

You are still missing the point.

A free, quality product is great. We all benefit from that.

The concern is the last "extinguish" part at the end.

But there is no reason for Microsoft to shut down GitHub, or VSCode or whatever.

Consumers just get to have a great free product.

Re: OpenAI and Microsoft extend partnership

#166
This technology is powerful and disruptive enough to merit social oversight. We get caught up in the wonder of the novel mechanisms and philosophical wanderings, whereas those who have the means to field this technology are effectively creating facts on the ground as we muse about it.

As just one dimension, let's briefly review education limited to testing. Options here range from (paid) cooperation between institutions and companies, to marketplaces for detection technology and testing systems, to complete rethink of testing at the institutional level, to regulatory intervention.

The dynamics and outcomes resulting from considering the above before or after widely available and improving LLMs are a fact of life, are possibly very different. We haven't yet crossed the Rubicon here and not sitting as captive spectators in a theater of ultra rich remains an option.

Re: OpenAI and Microsoft extend partnership

#167

Earlier quoted context omitted.

> The fundamental idea of OpenAI LP is that investors and employees can get a capped return if we succeed at our mission Sorry I still don’t get it. If a private equity investor has shares and another investor wants to buy them off of him at 200x they can do that right? Are they obliged to give any excess returns to the non profit? Can’t they just sell the shares at 50x and then buy them back (perhaps through some ot…

My guess is it likely has to do with dividends. But if your returns from the stocks are capped at 100x your share value, an efficient market would mean you share value never grows 200x.

It's not just about that. Perhaps there are benefits in having control of the company that make the shares more valuable than just the profit would make it out to be. Perhaps there's prestige in owning these shares.

Re: OpenAI and Microsoft extend partnership

#168

Earlier quoted context omitted.

There are definitely more people using Docs than Teams. I doubt that Microsoft will allow OpenAI to train on teams data from other businesses.

You might be right, do you have a source? They are fine with tons of telemetry and candy crush ads on the start bar. There were also other instances were Microsoft shared data before Google. In addition to that, one could argue they already share date from businesses source code with copilot.

They don't share private GitHub data with copilot. Teams data is default private.

Teams has 270 million monthly users (you can Google it, I'm looking at a geekwire post) and Google has 2 billion monthly g suite users (business insider)

Re: OpenAI and Microsoft extend partnership

#169

Let me translate this blog post out of corpspeak...: OpenAI has agreed to use Azure exclusively and for free, in return for Azure massively scaling up it's GPU capacity (which OpenAI was hitting before, hence threatening to move). In return, OpenAI gives an extensive license to Microsoft to use ChatGPT in Bing (and other products). Now why couldn't the blog post have just said that rather than hiding all the details?

Because they didn't want to openly say "Microsoft gives us GPUs and allows us to use them for free, hence practically buys us. In return we almost exclusively license what we produce to them, for free." Because it looks bad. Microsoft wants to be seen in a different light, and OpenAI wants to be perceived as an open, academic, capped-profit for a noble reason collective. It's all smoke and mirrors.

> OpenAI wants to be perceived as an open, academic, capped-profit for a noble reason collective.

Does anybody actually believe this? Their name has been a running joke for years already.

Re: OpenAI and Microsoft extend partnership

#170
post #160

Earlier quoted context omitted.

> If OpenAI takes a good chunk of Google's ad revenues then it doesn't seem that fanciful that it'll be up toward the top of market caps. OpenAI taking a large chunk of Google's ad revenue seems fanciful to me

More likely they bork a large chunk of Google's ad revenue by making information search and retrieval usable again under a UBI rationing to fast but not cheap tiered freemium model. That's before you consider information generation, process management greasing and problem solving potential use cases.

They have no moat and people don't like to wait for results.

People like ad subsidized things, that is why they have ads rather than people paying for things.

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