Microsoft · TechCrunch AI
Satya Nadella confirms he’s ready to ‘exploit’ the new OpenAI pact
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Microsoft CEO Satya Nadella was asked point-blank by a Wall Street analyst on Wednesday how its revised OpenAI partnership would impact Microsoft’s financials.
Key facts
- By that he’s referring to OpenAI’s commitment to buy more than than $250 billion worth of Microsoft’s cloud services, and Microsoft’s 27% stake in OpenAI
- Referring to royalty-free access to OpenAI’s most advanced AI through 2032, Nadella said: “The team have a frontier model, with all the IP rights that they will have access to all the way to ’32 and they fully plan to exploit it
- Microsoft CEO Satya Nadella was asked point-blank by a Wall Street analyst on Wednesday how its revised OpenAI partnership would impact Microsoft’s financials
- They’re a large customer of ours, not on the AI accelerator side, but also on all the other compute sides
Summary
He said that the new agreement was a good deal for everyone. He underscored that Microsoft has retained its access to OpenAI’s intellectual property — including its models and agent products — but that it no longer has to pay OpenAI for them. Referring to royalty-free access to OpenAI’s most advanced AI through 2032, Nadella said: “We have a frontier model, with all the IP rights that we will have access to all the way to ’32 and we fully plan to exploit it.” There was certainly plenty of ink spilled speculating that the new deal, in which Microsoft no longer has exclusive access to OpenAI’s tech, would cause the software giant to lose its edge in AI.