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Microsoft, OpenAI partnership has started to fray, NY Times reports

Microsoft, OpenAI partnership has started to fray, NY Times reports

Microsoft (MSFT) has already pumped $13B into Open AI, and, while Microsoft CEO Satya Nadella was initially willing to keep the cash investments flowing, he has begun to reconsider after OpenAI’s board of directors briefly ousted OpenAI CEO Sam Altman last year, Cade Metz, Mike Isaac, and Erin Griffith of The New York Times says, citing four people familiar with the company. Over the next few months, Microsoft wouldn’t budge as OpenAI continued to ask for more money. Altman once called OpenAI’s partnership with Microsoft “the best bromance in tech,” but ties between the companies have begun to fray. Financial pressure on OpenAI, concern about its stability, and disagreements between employees of the two companies have strained the 5-year partnership, 19 people familiar with the matter told Reuters. Investors in OpenAI include Microsoft, Thrive Capital, Khosla Ventures, Fidelity Management, Nvidia (NVDA), and SoftBank (SFTBY).

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