Microsoft has invested a significant $13.5 billion in OpenAI, the AI research company. This large investment has faced some criticism from investors, who are unsure how quickly OpenAI will become profitable given the rapidly changing world of artificial intelligence.
There have been recent reports of growing friction between Microsoft and OpenAI, largely stemming from OpenAI’s decision to transition to a for-profit company by 2025. If OpenAI doesn’t become profitable by then, it risks losing investment money and could even face being bought out by another company, potentially losing its independence.
A recent report suggested Microsoft was blocking OpenAI from becoming a for-profit company. However, Microsoft denied this, stating they were prepared to end negotiations and continue their existing partnership until 2030 if necessary.
Some people believe OpenAI might announce they’ve achieved Artificial General Intelligence (AGI) as a way to become independent from Microsoft. If that happened, Microsoft would likely see very little benefit from the billions they’ve invested. However, recent developments suggest a more positive outcome might be possible.
Following a recent agreement between OpenAI and Microsoft to continue their multi-billion dollar collaboration, OpenAI’s plans to become a for-profit company appear to be progressing. Analysts at BNP Paribas suggest Microsoft might invest further in OpenAI, potentially gaining a stake valued at as much as $150 billion, according to Business Insider.
As a huge tech follower, I’m blown away by this potential deal! It could seriously be the most profitable investment *ever*. Microsoft first invested in OpenAI way back in 2019 with a billion dollars, and then poured in another $13 billion after ChatGPT took off. If OpenAI turns into a for-profit company, Microsoft is poised to own a massive piece of it – it’s a really exciting prospect!
OpenAI could soon offer standard stock to investors, letting it raise funds for the powerful computing resources needed to develop its advanced AI. This depends on the company being valued at $500 billion, with Microsoft owning 30% of the newly formed for-profit company.
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2025-09-17 14:09