Altman and Nadella rift may put $14 billion partnership at risk: Report
A deepening rift is emerging in one of the biggest partnerships of the AI boom.
The $14 billion deal between Microsoft and OpenAI paired a hot startup with a legacy giant, giving each party something that they needed. According to The Wall Street Journal, there are signs that the deal may be coming apart.
The relationship between OpenAI cofounder and CEO Sam Altman and Microsoft CEO Satya Nadella started off warmly, but has since grown more frigid, the report says.
Differences related to several terms of the deal appear to be generating friction, including a trigger that allows for the deal to be renegotiated once OpenAI achieves “AGI” (artificial general intelligence) — a fuzzy concept generally understood to be when an AI system surpasses human intelligence and capabilities.
“In closed-door negotiations, Microsoft negotiators have told OpenAI that the present technology is nowhere near that threshold, the people said. Nadella dismissed the idea of declaring such a milestone on a popular podcast in February, calling it ‘nonsensical benchmark hacking.’
Executives at OpenAI were taken aback, according to people familiar with the matter.”
Rumors of the deal fraying have been popping up for months, and during this time Microsoft has also been canceling some data center leases and pausing some projects under construction.
The relationship between OpenAI cofounder and CEO Sam Altman and Microsoft CEO Satya Nadella started off warmly, but has since grown more frigid, the report says.
Differences related to several terms of the deal appear to be generating friction, including a trigger that allows for the deal to be renegotiated once OpenAI achieves “AGI” (artificial general intelligence) — a fuzzy concept generally understood to be when an AI system surpasses human intelligence and capabilities.
“In closed-door negotiations, Microsoft negotiators have told OpenAI that the present technology is nowhere near that threshold, the people said. Nadella dismissed the idea of declaring such a milestone on a popular podcast in February, calling it ‘nonsensical benchmark hacking.’
Executives at OpenAI were taken aback, according to people familiar with the matter.”
Rumors of the deal fraying have been popping up for months, and during this time Microsoft has also been canceling some data center leases and pausing some projects under construction.
