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Microsoft and OpenAI end their exclusive and revenue-sharing deal

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Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#71

Post by lokar »

iewj wrote: post #51
theplatman wrote: post #34

Earlier quoted context omitted.

when i realized that sama isn't that much of an ai researcher, it became clearer that this is more akin to a group delusion for hype purposes than a real possibility

He’s a glorified portfolio manager (questionable how good he actually is given the results vs Anthropic and how quickly they closed the valuation gap with far less money invested) + expert hype man to raise money for risky projects.

From the reporting I’ve read his main attributes are being a sociopath with an amazing ability to manipulate people 1:1

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#72

Post by eieiw »

JumpCrisscross wrote: post #68
iewj wrote: post #64

Earlier quoted context omitted.

What kind of ludicrous statement is this? Any monopoly with viable economics for profit with no threat of competition yields monopoly profits…

> Any monopoly with viable economics for profit with no threat of competition yields monopoly profits "With viable economics" is the point. My "ludicrous statement" is a back-of-the-envelope test for whether an industry is nonsense. For comparison, consolidating all of the Pets.com competitors in the late 1990s would not have yielded a profitable company.

Very convenient to leave out Amazon in your back of the envelope test, whose internal metrics were showing a path toward quasi-monopoly profits.

Do you argue in good faith?

There’s a difference between being too early vs being nonsense.

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#73

Post by concinds »

Am I crazy, or was this press release fully rewritten in the past 10 minutes? The current version is around half the length of the old one, which did not frame it as a "simplification" "grounded in flexibility" but as a deeper partnership. It also had word salad about AGI, and said Azure retained exclusivity for API products but not other products, which the new statement seems to contradict.

What was I looking at?

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#74

Post by lokar »

dinosor wrote: post #17
_jab wrote: post #13

This agreement feels so friendly towards OpenAI that it's not obvious to me why Microsoft accepted this. I guess Microsoft just realized that the previous agreement was kneecapping OpenAI so much that the investment was at risk, especially with serious competition now coming from Anthropic?

> Microsoft will no longer pay a revenue share to OpenAI. I feel this looks like a nice thing to have given they remain the primary cloud provider. If Azure improves it's overall quality then I don't see why this ends up as a money printing press as long as OpenAI brings good models?

Does anyone expect azure quality to improve? Has it improved at all in the last 3 years? Does leadership at MS think it needs to improve?

I doubt it

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#75

Post by JumpCrisscross »

azinman2 wrote: post #62
airstrike wrote: post #22

Kagi Translate was kind enough to turn this from LinkedIn Speak to English: The Microsoft and OpenAI situation just got messy. We had to rewrite the contract because the old one wasn't working for anyone. Basically, we’re trying to make it look like we’re still friends while we both start seeing other people. Here is what’s actually happening: 1. Microsoft is still the main guy, but if they can't keep up with the tec…

This was actually really helpful. I feel like it should be done for all PR speak.

It's better than the original, but still off.

"The Microsoft and OpenAI situation just got messy" is objectively wrong–it has been messy for months [1]. Nos. 1 through 3 are fine, though "if they can't keep up with the tech, OpenAI is moving out" parrots OpenAI's party line. No. 4 doesn't make sense–it starts out with "we" referring to OpenAI in the first person but ends by referring to them in the third person "they." No. 5 is reductive when phrased with "just."

It would seem the translator took corporate PR speak and translated it into something between the LinkedIn and short-form blogger dialects.

[1] https://www.wsj.com/tech/ai/openai-and-microsoft-tensions-ar...

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#76

Post by martinald »

Really interesting. Why would Microsoft have done this deal? I'm a bit lost. Sure they get to not pay a revenue share _to_ OpenAI but surely that's limited to just OpenAI products which is probably a rounding error? Losing exclusivity seems like a big issue for them?

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#77

Post by eieiw »

JumpCrisscross wrote: post #67
iewj wrote: post #24

Earlier quoted context omitted.

In retrospect all those OAI announcements are gonna look so cringe. They did not need to go so hard on the hype - Anthropic hasn’t in relative terms and is generating pretty comparable revenues at present.

> They did not need to go so hard on the hype - Anthropic hasn’t in relative terms and is generating pretty comparable revenues at present OpenAI bet on consumers; Anthropic on enterprise. That will necessitate a louder marketing strategy for the former.

That’s funny.

Why is it Altman is facing kill shots and Dario isn’t?

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#78

Post by otabdeveloper4 »

delis-thumbs-7e wrote: post #30

It’s insane how they talk about AGI, like it was some scientifically qualifiable thing that is certain to happen any time now. When I have become the javelin Olympic Champion, I will buy a vegan ice cream to everyone with a HN account.

> AGI

We already have several billion useless NGI's walking around just trying to keep themselves alive.

Are we sure adding more GI's is gonna help?

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#79

Post by Schlagbohrer »

brookst wrote: post #15
aliljet wrote: post #10

Why is this being made public?

It’s an agreement between a public company and a highly scrutinized private company. Several of the provisions will change what happens in the marketplace, which everyone will see. I imagine the thinking was that it’s better to just post it clearly than to have rumors and leaks and speculations that could hurt both companies (“should I risk using GCP for OpenAI models when it’s obviously against the MS / OpenAI agree…

Also it's about OpenAI going public.

Re: Microsoft and OpenAI end their exclusive and revenue-sharing deal

#80

Post by MarleTangible »

airstrike wrote: post #22

Kagi Translate was kind enough to turn this from LinkedIn Speak to English: The Microsoft and OpenAI situation just got messy. We had to rewrite the contract because the old one wasn't working for anyone. Basically, we’re trying to make it look like we’re still friends while we both start seeing other people. Here is what’s actually happening: 1. Microsoft is still the main guy, but if they can't keep up with the tec…

For reference: https://translate.kagi.com/?from=LinkedIn+speak&to=en
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