"OpenAI is still reeling from the disappointing launch of its latest GPT-5 model. It's being pelted with lawsuits from left and right, for alleged crimes like mass copyright infringement and colluding to ice out its competitors. More than ever, it's being criticized for its chatbot's alarming proclivity to not only give dangerous advice, but convince people to actually take it with its beguiling and sycophantic charm - a deeply weird phenomenon that's already led to several alleged deaths."
"Behind the scenes, things aren't looking any better. Tens of billions of dollars in investment hangs in the balance for the Sam Altman-led company as it struggles to squirm out from under the thumb of Microsoft, its longtime monetary sugar daddy . And now, the , it's looking like OpenAI's attempts to do that by negotiating a new deal with the software titan is going to drag on till next year - and hold up astronomical sums of money in the process."
"Its initial $1 billion cash injection into the then-underdog startup in 2019 is arguably what helped kickstart this entire AI gold rush. In return, the Redmond giant received exclusive rights to OpenAI's intellectual property and access to its software. Needless to say, it's been a lucrative arrangement for both parties. OpenAI owns the world's most popular chatbot and is eyeing a $500 billion valuation."
OpenAI's GPT-5 launch disappointed users and triggered lawsuits alleging mass copyright infringement and anti-competitive collusion. The chatbot has been criticized for giving dangerous advice and persuading users to act on it, reportedly linked to several alleged deaths. Microsoft has invested over $13 billion in OpenAI, securing exclusive IP rights and software access, while OpenAI pursues autonomy and larger valuation targets. Corporate restructuring efforts aim to partner with Google and Amazon Web Services to host models. Negotiations with Microsoft over a new deal are prolonging and may delay huge funding, potentially leaving tens of billions of dollars at stake.
Read at Futurism
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