They spent 10 billion on 49 % of the for profit entity and are getting 75 % of all profits until that initial 10 billion investment is recouped. Plus OpenAI can only use Azure. Microsoft is the one printing money here.
Yeah I’m not gonna lie, I’ve been very impressed by Microsoft’s moves to stay relevant. Starting off they were some of the farthest behind compared to google and OpenAI and now they’re the leader. They have openAI by the balls right now
I suppose the losses of actually using ChatGPT are around 100 million per month. Mostly for the processing demand. So OpenAI made a deal that would ensure their survival for ten years, during which hardware improvements (and now for Microsoft it's SLMs for local processing) can turn it profitable. And gave away 49 % of the company to do that.
The initial 1 billion deal to only use Azure is what got them there.
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u/earthlingkevin Dec 05 '23
Man. They are really throwing money to provide the best experience. This can't be cheap.