Microsoft in advanced talks for continued access to OpenAI tech, Bloomberg reports
The companies have discussed new terms that would allow Microsoft to use OpenAI's latest models and technology even if the ChatGPT maker declares it has achieved artificial general intelligence (AGI), or AI that surpasses human intelligence, the report said.
A clause in OpenAI's current contract with Microsoft will shut the software giant out of some rights to the startup's advanced technology when it achieves AGI.
Negotiators have been meeting regularly, and an agreement could come together in a matter of weeks, Bloomberg News reported.
OpenAI did not immediately respond to a Reuters request for comment, while Microsoft declined to comment.
OpenAI needs Microsoft's approval to complete its transition into a public-benefit corporation. The two have been in negotiations for months to revise the terms of their investment, including the future equity stake Microsoft will hold in OpenAI.
Last month, the Information reported that Microsoft and OpenAI were at odds over the AGI clause.
OpenAI is also facing a lawsuit from Elon Musk, who co-founded the company with Sam Altman in 2015 but left before it surged in popularity, accusing OpenAI of straying from its founding mission — to develop AI for the good of humanity, not corporate profit.
Microsoft is set to report June-quarter earnings on Wednesday, with its relationship with OpenAI in the spotlight, as the startup turns to rivals Google, Oracle and CoreWeave for cloud capacity.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
29 minutes ago
- CNA
Israeli cyber startup Noma Security raises $100 million in private funding round
TEL AVIV :Israeli cybersecurity startup Noma Security, whose platform secures enterprise data and AI models against AI agents, said on Thursday it raised $100 million in a private funding round, bringing total funds raised to date to $132 million. Israel's cyber security sector has been active of late and many startups have raised significant sums in funding rounds and in mergers and acquisitions. A surge in cyberattacks, including data breaches and ransomware, has driven demand for more comprehensive defences and fueled interest in cyber firms. On Wednesday, Palo Alto Networks said it would buy Israeli peer CyberArk Software for $25 billion. It follows Alphabet's $32 billion acquisition of Israeli startup Wiz in March. Noma Security's Series B round was led by U.S.-based venture capital firm Evolution Equity Partners, with continued participation from Ballistic Ventures and Israeli firm Glilot Capital. The latest funds, it said, will be used to further expand its operations across North America and Europe, Middle East and Africa and to more rapidly grow its product, research and development teams in Tel Aviv. Noma Security, which was founded in 2023, came into prominence last November after raising $32 million. The company said it helps organisations "identify millions of AI and AI agent risks while simultaneously prioritising and mitigating novel threats at scale." AI agents are AI systems that act autonomously on behalf of users or organisations.
CNA
an hour ago
- CNA
AI startup Anaconda raises $150 million in Series C funding led by Insight Partners
Anaconda, a leading provider of open-source Python software for data science and AI, has raised more than $150 million in a Series C funding round led by Insight Partners, with additional participation from Abu Dhabi's Mubadala Capital. The funding round values the startup at $1.5 billion, Bloomberg News reported, citing a person familiar with the matter. The company said on Thursday the fresh capital will support product development, potential acquisitions, and international expansion, as well as provide liquidity for employees. The funding comes amid increased competition in the enterprise AI software sector, with Python continuing to dominate as the programming language of choice for AI development. U.S. startup funding has surged 75.6 per cent in the first half of 2025, led by the AI boom, putting it on track for its second-best year ever, even as venture capital firms struggled to raise money, according to PitchBook. This year's boom has been driven largely by major AI investments and bold bets from big tech companies, a wave of activity set off by the debut of ChatGPT in late 2022. In the past three months alone, $69.9 billion was invested in U.S. startups. Anaconda did not immediately respond to a Reuters request for comment regarding the valuation. The company is seeking to capitalize on growing enterprise demand for open-source tools as organizations shift from isolated data science projects to broader AI applications. The startup has also expanded its leadership team, hiring executives with backgrounds in enterprise technology and product innovation.
CNA
an hour ago
- CNA
Wall Street jumps as Microsoft enters $4 trillion club after results
The S&P 500 and Nasdaq climbed to new record highs on Thursday, as Microsoft's blockbuster earnings propelled the tech giant past the $4 trillion milestone and fueled investor confidence in Big Tech's hefty investments in artificial intelligence. Microsoft became the second publicly traded company after Nvidia to surpass $4 trillion in market valuation, following a blockbuster earnings report. Meta Platforms also climbed 12.1 per cent to an all-time high in early trading, after the social media giant forecast third-quarter revenue well above estimates, thanks to AI boosting its core advertising business. Nvidia gained more than 1 per cent. The S&P technology index and the communication services index both hit record highs, up 1.2 per cent and over 3 per cent, respectively. At 09:50 a.m. ET, the Dow Jones Industrial Average rose 88.73 points, or 0.20 per cent, to 44,550.01, the S&P 500 gained 45.18 points, or 0.71 per cent, to 6,408.08 and the Nasdaq Composite gained 245.09 points, or 1.16 per cent, to 21,374.76. A Commerce Department report showed U.S. inflation increased in June as tariffs on imports started raising the cost of some goods, supporting economists' expectations that price pressures would pick up in the second half of the year. "Thursday's PCE was stronger than expected and throws cold water on the idea of a fall rate-cut, as it's clear that lower interest rates are not justified at this time," said Clark Bellin, president and chief investment officer, Bellwether Wealth. "Inflation remains sticky and justifies the Fed's decision to keep interest rates unchanged at Wednesday's meeting." Separately, weekly jobless claims increased marginally last week, suggesting the labor market remained stable. Attention now turns to Friday's non-farm payrolls report and a looming tariff deadline, with President Donald Trump refusing to extend trade talks for lagging partners. Easing global trade war fears, signs of U.S. economic resilience, and renewed AI optimism have set Wall Street on course for monthly gains. The S&P 500 and blue-chip Dow are set for a third straight monthly gain - their longest winning streak in nearly a year - while the Nasdaq was on track for its best monthly run since March 2024. On Wednesday, Federal Reserve Chair Jerome Powell diluted investor expectations for an interest rate cut in September after the central bank kept rates unchanged. Traders now see a 58.8 per cent chance the Fed will stay pat in September as well, according to CME's FedWatch tool. Powell said it was too early to predict a September rate cut, and that current policy was not restricting the economy. The statement came after stronger-than-expected GDP data for the second quarter. The "hold" verdict prompted another jibe on Powell by Trump, while Treasury Secretary Scott Bessent said he expected an announcement on Powell's successor by year-end. EU officials said European liquor could face 15 per cent tariffs from August 1 until a different agreement is reached, with talks set to continue in the fall. Trump's deal with South Korea on Wednesday cut the country's import tariff to 15 per cent from the previously threatened 25 per cent. Among other stocks, Applied Digital soared 32.7 per cent after the data center operator surpassed estimates for quarterly revenue. Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq.
