OpenAI is negotiating with Microsoft Corporation (MSFT.US) on the transformation to for-profit, focusing on four main clauses.

The artificial intelligence leader company OpenAI, led by Sam Altman, is in negotiations with Microsoft Corporation (MSFT.US) to transition from its current non-profit structure to a for-profit enterprise. According to sources, the negotiations between the two companies primarily focus on four aspects, including Microsoft Corporation's equity in this for-profit entity, whether Microsoft Corporation will continue to be the exclusive cloud provider for OpenAI, how long Microsoft Corporation's rights to use OpenAI's intellectual property in their products will last, and whether Microsoft Corporation will continue to take 20% of OpenAI's revenue. Microsoft Corporation has already invested around $14 billion in OpenAI, including the latest $6.6 billion funding round which valued OpenAI at $157 billion. Altman and some investors have been pushing for the transformation, and the negotiations reflect the accelerated development and ambitious goals of OpenAI, such as the potential manufacture of humanoid Siasun Robot & Automation. It is currently unclear when OpenAI and Microsoft Corporation plan to complete this process, but both parties are moving quickly and facing time pressure. If OpenAI fails to complete the transition within the next two years, investors from the recent funding round can withdraw their funds with 9% interest totaling around $7.2 billion. Company leaders have informed employees that OpenAI hopes to buy back some of their shares after the profit transformation, giving employees ample reason to want to complete this transformation as soon as possible. A report from November stated that OpenAI has begun preliminary negotiations with the California Attorney General's Office to transition into a for-profit company. The report added that the value of these shares and OpenAI's assets will be crucial factors in ensuring regulatory approval for the reorganization, which may take some time. Founded in 2015 by individuals including Altman and Elon Musk, OpenAI is a non-profit artificial intelligence research organization. In 2019, the company added OpenAI Global LLC as a for-profit subsidiary. However, a for-profit structure will be more attractive to investors. Earlier this month, OpenAI stated that Musk "agreed in the summer of 2017 that profit was the next step for OpenAI's mission" and by fall, he had "requested the majority ownership of the company." It is worth noting that the transition of OpenAI requires resolving key issues with Microsoft Corporation, including defining how to achieve Artificial General Intelligence (AGI) and the distribution of profits. In October of this year, media reports revealed that the contract between OpenAI and Microsoft Corporation included a provision that if OpenAI develops AGI, Microsoft Corporation will not be able to use OpenAI's technology. This provision is intended to prevent tech giants like Microsoft Corporation from misusing AGI technology. Previous reports mentioned that an undisclosed agreement reached between Microsoft Corporation and OpenAI last year defined AGI, stating that AGI would only be achieved when the system developed by OpenAI brings the earliest investors, including Microsoft Corporation, the maximum total profit deserved, totaling around $100 billion in profit. Currently, OpenAI is losing billions of dollars annually, and reports from over two months ago indicated that OpenAI informed potential investors that they expect to lose $14 billion by 2026, three times this year's losses, with the first annual profit forecasted to be achieved by 2029. However, earlier this month, media reports suggested that OpenAI is negotiating with Microsoft Corporation to waive this AGI provision in order to unleash investment potential.