When Bill Gates cautioned Satya Nadella that Microsoft Corporation’s (NASDAQ:MSFT) $1 billion OpenAI investment could go up in flames, few could have imagined it would turn into a $135 billion stake.
From Lighting Money On Fire To A $135 Billion Win
Microsoft shares climbed nearly 2% Tuesday after the company unveiled a new chapter in its partnership with OpenAI, converting its stake into a 27% ownership in OpenAI Group Public Benefit Corporation valued at roughly $135 billion.
The move cements Microsoft’s status as OpenAI’s frontier model partner, with exclusive rights to its intellectual property and Azure API until artificial general intelligence is independently verified.
Following the announcement, Nadella spoke about the partnership and how it didn’t start with confidence. During an appearance on The TBPN Show, Nadella recalled a blunt remark from Microsoft co-founder Gates.
Bill Gates Told Satya Nadella ‘You’re Going To Burn This Billion Dollars’ By Investing In OpenAI – But Microsoft’s Bet Became A 100-Bagger
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