By Nishit Singh Raghuwanshi

Copyright timesnownews

OpenAI and Microsoft have recently announced a non-binding deal to change their relationship. This will let the ChatGPT maker restructure its core and become a for-profit organization. Until now, Microsoft has been a crucial part of OpenAI’s journey from the beginning as the former invested $1 billion in 2019, followed by a whopping $10 billion investment in 2023. In return, the Windows maker possesses exclusive rights to market OpenAI software tools through its azure cloud, clubbed with priority access to its cutting-edge models. What Is The Reason Behind The Separation? See, OpenAI is has been increasing its impact and resources and the most recent example of the same was a $300 billion worth of long-term contracts with Oracle and a cloud deal with Google. This shows that OpenAI is now looking beyond Microsoft to achieve what it wants in the future and never lacks the computing muscle to do so. And with the enormous growth, OpenAI is looking to implement a highly conventional corporate structure and partnerships with different cloud providers as well. Now, going for profit from non-profit is something that will change a lot of things for both organizations. Nonetheless, under the current terms, the nonprofit department of the company will receive around $1000 billion, which amounts to 20% of its $500 billion valuation. And this alone will make the ChatGPT maker one of the most well-funded non-profit organizations in the world. what’s mind-blowing here is that OpenAI is likely planning an IPO, not immediately, but in the long run. Reason is that going public will create a lot of capital-gaining opportunities for OpenAI, which will ultimately help the company in meeting the costs of computing, infrastructure, and more. As of now, nothing related to Microsoft’s ownership in OpenAI or its right to access all the latest models of OpenAI has been revealed. Speculations are that we will get to see and hear more about the non-binding agreement in the near future. Get Latest News live on Times Now along with Breaking News and Top Headlines from Technology Science and around the world.