<a href="https://www.world-today-news.com/finally-microsoft-presents-affordable-laptops/" title="Finally, Microsoft Presents 'Affordable' Laptops”>OpenAI and Microsoft are facing the unprecedented challenge of how to turn a nearly $14 billion investment in a non-profit organization into shares in a for-profit company.
OpenAI, at its fastest, moved from a small, non-profit company to a giant in the technology world with a market value of billions of dollars, thanks to the establishment of a for-profit arm that raised money from major sponsors, such as Microsoft.
According to the newspaper “Wall Street Journal“The start-up company developing the program “Chat GBT” recently announced that they intend to transform into a profitable company after receiving a large amount of funding.
The newspaper says that one of the biggest challenges facing the company will be determining how to distribute dividends as they transform into a profitable company.
Microsoft is currently the biggest investor in OpenAI, and the global tech giant could have a large stake in the company, which is expected to be the second most expensive startup in the States United after SpaceX, owned by billionaire Elon Musk.
According to people familiar with the matter, Microsoft and OpenAI have hired investment banks, including Morgan Stanley and Goldman Sachs, to advise them on the transformation process.
In addition to determining the size of Microsoft’s stake in the restructured artificial intelligence company, the two parties must also reach an agreement on the management rights that Microsoft will receive, according to the newspaper.
Currently, Microsoft, other investors, and OpenAI employees have rights to future profits generated by a for-profit subsidiary controlled by OpenAI’s non-profit board of directors.
Microsoft has invested about $13.75 billion in Open AI since 2019, including $6.6 billion it provided in the company’s latest funding round.
The chatbot ChatGPT, presented by OpenAI, has caused a global movement since its launch in 2022, thanks to its ability to write and communicate like humans.
The program “ChatGPT” has increased the popularity of artificial intelligence and contributed to the significant increase in the valuation of the company “OpenAI”, which is based in San Francisco.
Last August, OpenAI said that GPT Chat now has more than 200 million weekly active users, double the number it last dropped.
The company said that “92 percent of the 500 largest companies in the United States use its products. “
2024-10-18 16:41:00
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