"We have an investment in OpenAI Global, LLC ('OpenAI') and have made total funding commitments of $13 billion," Microsoft wrote in the SEC filing on Wednesday.
Accounting expert Francine McKenna told Business Insider that the new disclosure suggests that Microsoft's previous investments in OpenAI were 'soft money,' such as discounts or credits for services and internal spending that fell below a certain threshold where the software giant didn't need to publicly disclose details.
The latest 'equity method investment' disclosure signals that Microsoft recently purchased stock or share rights in OpenAI, instead of just partnering, said McKenna.
In a previous SEC filing, Microsoft described the nature of its relationship with OpenAI as a partnership rather than an equity investment."
Collection
[
|
...
]