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OpenAI Finalizes Corporate Restructuring, Gives Microsoft 27% Stake and Technology Access Until 2032

1 week 1 day ago
Microsoft and OpenAI have finalized a new agreement that removes uncertainty for investors and clears the path for OpenAI to restructure as a for-profit business. Microsoft receives a 27% ownership stake in OpenAI worth approximately $135 billion and retains access to the AI startup's technology until 2032, including models that achieve AGI. OpenAI completed its recapitalization, simplifying its corporate structure while keeping the nonprofit in control of the for-profit entity. The OpenAI Foundation receives an equity stake worth roughly $130 billion and plans to initially focus on funding work to accelerate health breakthroughs. Microsoft backed OpenAI with $13.75 billion and was the biggest holdout among investors during negotiations. Once OpenAI achieves AGI, verified by an independent expert panel, Microsoft will no longer receive a cut of OpenAI's revenue. Microsoft also loses its right of first refusal on new cloud infrastructure business from OpenAI, though OpenAI commits an additional $250 billion to Azure.

Read more of this story at Slashdot.

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Clearview AI faces criminal heat for ignoring EU data fines

1 week 1 day ago
Noyb says New York-based facial recognition biz flouted GDPR orders and kept scraping anyway

Privacy advocates at Noyb filed a criminal complaint against Clearview AI for scraping social media users' faces without consent to train its AI algorithms.…

Connor Jones