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Fact check: Post Title: If Musk buys Chat GPT I’m considering cancelling my subscription. Post Content: Rumor is Musk is in the lead to buy Chat GPT. If he does I’m canceling and will not use the service. Not just for political reasons - although that would be enough - but his purchase of Twitter was a disaster and became a cesspool of hate and his recent (and probably illegal) activities with private data has me frightened. I’d be looking for an alternative that is not Chat GPT. Google Al/Gemini? Anyone else worried about this or have alternatives? Or am I just paranoid? Comment Chain: 1. Altman already declined. You’re safe 2. Money talks unfortunately, and board members don’t give a shit about anything but that almighty dollar 3. MS holds a nearly 50% stake. Why would they agree to sell? 4. Microsoft does NOT own 49% of shares. Their investment entitles them to 49% of profits, but they have no voting shares. “Microsoft (MSFT.O) said in a statement on Friday that it does not own any part of OpenAI, an artificial intelligence powerhouse. “While details of our agreement remain confidential, it is important to note that Microsoft does not own any portion of OpenAI and is simply entitled to share of profit distributions,” said company spokesman Frank Shaw.” 5. If they sell them MS gets 50B. That's as much as Activision was bought for and openAI is going to be much more valuable than Activision. 6. No, they don’t own any of OpenAI that’s the point. My comment and quote from MSFT was pretty clear about that. OpenAI the for profit company is entirely owned by OpenAI the non profit. 7. Dude just said MS gets 50% of the profits. You done sell companies for revenue. The sale price would be a buyout of the company equating to profit. You don't think MS has a buy out clause so they don't have to deal with new management? 8. You clearly don’t know anything about business. 9. Straight from gpt: If OpenAI were to be acquired by another company, Microsoft's existing agreements and investments would likely come into play in several ways: 1. Investment Protections – Microsoft’s multi-billion-dollar investment may include clauses that ensure they receive a return on their investment in the event of an acquisition. This could involve financial compensation or equity transfers. 2. Exclusive Licensing Rights – Microsoft has exclusive rights to certain OpenAI technologies (such as GPT models) for integration into its products. These agreements might remain in force even if OpenAI were acquired, ensuring Microsoft retains its competitive advantage. 3. Right of First Refusal – Microsoft may have a contractual right to negotiate first if OpenAI were to seek acquisition, allowing them to either purchase OpenAI outright or block a sale to a competitor. 4. Regulatory Scrutiny – A major acquisition of OpenAI would likely face regulatory review, especially given the competitive implications in the AI industry. Microsoft’s deep integration with OpenAI could influence how regulators view the acquisition. Ultimately, Microsoft has structured its partnership to maintain strategic control over OpenAI’s key technologies, reducing the risk of losing access in the event of an acquisition. Original Reddit link: https://www.reddit.com/r/ChatGPT/comments/1imjf0j/comment/mc6qgj7/
1. Summary of the results
The concern about Elon Musk buying OpenAI appears to be based on incomplete understanding of OpenAI's complex ownership and governance structure. Microsoft does not own OpenAI but has a significant economic interest of up to 49% of profits from OpenAI's for-profit arm [1]. The organization has an unusual structure where a non-profit controls the for-profit entity, with investors having profit claims but no formal control [2].
2. Missing context/alternative viewpoints
Several crucial pieces of context are missing from the original discussion:
- Microsoft has invested approximately $13 billion in OpenAI, including $1 billion in early stages and reportedly $10 billion more recently [1]
- There is a confirmed strategic partnership between Microsoft and OpenAI through 2030, which includes:
- IP access
- Revenue sharing
- API exclusivity
- A right of first refusal (ROFR) model for new capacity [3]
- Both companies have publicly committed to advancing AI research responsibly and creating trustworthy AI technologies [4]
3. Potential misinformation/bias in the original statement
The original post and comment chain contain several misconceptions:
- The assumption that OpenAI could be easily bought overlooks its complex governance structure where the non-profit controls the for-profit entity [2]
- While Microsoft doesn't have formal ownership, studies suggest they may have de facto control through their significant economic interest and strategic partnership [2]
- The discussion about Microsoft's "50% stake" is incorrect - they have profit-sharing rights but no ownership stake, and hold only a non-voting board seat [1]
The fear about a potential Musk takeover should be balanced against the reality that OpenAI's current structure and Microsoft's deep integration through their long-term partnership [3] make such a scenario significantly more complex than a simple acquisition.