Microsoft CEO Satya Nadella said Bill Gates initially warned that the company’s 2019 $1 billion investment in OpenAI would likely be a write-off, he recounted in a TBPN interview. The bet, made when OpenAI was still a nonprofit, ultimately expanded to about $13 billion and helped secure Microsoft a 27% stake valued near $135 billion after an October restructuring. Under revised terms, OpenAI agreed to purchase up to $250 billion of Azure services over time and remit 20% of its revenue to Microsoft through 2032 while gaining flexibility to buy compute elsewhere, The Information reported. Microsoft said OpenAI boosted its net income by roughly $7.6 billion. Gates has since lauded the rapid progress of AI and predicted widespread automation of production and logistics.
Nadella says Gates doubted Microsoft’s OpenAI bet: “You’re going to burn this $1 billion”
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