OpenAI is reportedly planning to become a for-profit company and is discussing the details of that transition with major investor Microsoft. According to a Thursday (Dec. 26) report from The Information, the two companies have been in talks since October about how to restructure the artificial intelligence (AI) firm. Microsoft is OpenAI’s largest investor, having supported the company with $13 billion. Citing a person who has spoken with OpenAI CEO Sam Altman about the Microsoft discussions, The Information said the talks have centered on four topics: Microsoft’s equity stake in the for-profit entity; whether Microsoft will continue to be OpenAI’s exclusive cloud provider; how long Microsoft will maintain its rights to use OpenAI’s intellectual property in its products; and whether Microsoft will continue to take 20% of OpenAI’s revenue. OpenAI and Microsoft did not immediately reply to PYMNTS’ request for comment. OpenAI announced in September its plans to restructure into a for-profit benefit corporation that won’t be controlled by its nonprofit board, PYMNTS reported at the time. Asked about the report by Reuters at the time, an OpenAI spokesperson said: “We remain focused on building AI that benefits everyone, and we’re working with our board to ensure that we’re best positioned to succeed in our mission. The nonprofit is core to our mission and will continue to exist.” The company’s restructuring efforts also face another obstacle in the form of a lawsuit from Elon Musk, who sued to stop the transition, PYMNTS reported earlier this month. The billionaire and his AI startup xAI filed for a preliminary injunction in federal court to prevent the conversion and prevent OpenAI from blocking its investors from funding its rivals, a group that includes Musk’s company. Musk’s attorneys argued that OpenAI should be blocked from “benefitting from wrongfully obtained competitively sensitive information or coordination via the Microsoft-OpenAI board interlocks.” Separately, OpenAI Chief Commercial Officer Giancarlo “GC” Lionetti said the company is growing its sales staff amid a “paradigm shift” in corporate AI spending. The company has been signing new contracts with healthcare, manufacturing and legal companies, among them vaccine maker Moderna and home improvement company Lowe’s, Lionetti said, according to a Nov. 27 report from The Information. “We believe AI products are truly a paradigm shift, and that starts to unlock these new ways of working that you’re referring to here,” he said. “Users and customers are finding a new way to work.” The post OpenAI Weighs For-Profit Move Amid Talks With Microsoft appeared first on PYMNTS.com. {Categories} _Category: Takes{/Categories} {URL}https://www.pymnts.com/news/artificial-intelligence/2024/openai-weighs-for-profit-move-amid-talks-with-microsoft/{/URL} {Author}PYMNTS{/Author} {Image}{/Image} {Keywords}Artificial Intelligence,AI,artificial intelligence,for-profit benefit corporation,GenAI,generative AI,Microsoft,News,OpenAI,PYMNTS News,What's Hot{/Keywords} {Source}POV{/Source} {Thumb}{/Thumb}