European Union regulators are concerned that Microsoft may be covertly controlling OpenAI as its biggest investor.

  • abhibeckert@lemmy.world
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    10 months ago

    They’re not a majority stakeholder. They invested $13b and a lot of that wasn’t cash, it was just credits to use Azure.

    That’s more money than anyone else has invested so far, but it’s only about 2 weeks revenue for Microsoft and not even close to enough to fund OpenAI.

    Wether or not they’re a non profit? I dunno. OpenAI’s structure is pretty unusual.

    • Ephera@lemmy.ml
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      10 months ago

      As I understand, OpenAI’s structure is similar to Mozilla’s, so a non-profit steers a for-profit.

      But there’s the massive difference that OpenAI’s for-profit takes on outside investors. That is where Microsoft has invested.
      As such, control over the for-profit really isn’t in the hands of the non-profit, because obviously, they have to satisfy whoever gives them money.

      In particular, it also means that unlike in Mozilla’s structure, where the for-profit is ‘neutered’ in that it can’t pay out profits to anyone, this really isn’t the case for OpenAI.

      So, all in all, I really don’t feel like the non-profit part of OpenAI has any real relevance.

    • technojamin@lemmy.world
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      10 months ago

      A year later, Microsoft revealed it’d built an Azure-hosted, OpenAI-co-designed supercomputer that at the time was among the most powerful machines in the world.

      I don’t think you can co-create a supercomputer with a company and not be deeply involved with them. Combine that with the inherent power Microsoft has because of their money, and I think it’s pretty easy to see how they could exercise control indirectly.