Rachel Warren

So for OpenAI's part, they're now free to license their models to competitors like Amazon, Google Cloud, they can serve their products across any cloud provider.

And that of course can allow them to tap into the massive compute resources needed for the next generation

of AI.

Microsoft also extended its license to open AI's models and products through the early 2030s.

But the really notable element that stuck out to me, and I think this is where there's a clear win for Microsoft, is the removal of the AGI trigger, if you will, or the artificial general intelligence trigger that previously threatened to cut off

Microsoft's access to OpenAI if OpenAI reached human-level intelligence with its models.

So under this new deal, Microsoft now retains its rights even to post-AGI models.

They locked in their access to OpenAI's IP essentially for the next decade.

So I think this is good news for both businesses, but if I had to pick a winner, I'd say it's Microsoft.

I agree with that, Matt.

And I think the other thing I would add is I think for a long time now, we've been seeing an interest from OpenAI.

There's been a lot of reports that have come out over the last year.

They really wanted to diversify the licensing agreements that they had.

They felt a bit strangled, if you will, by the expectations

exclusivity agreement with Microsoft.

And so I do think to that end, management there sees a lot of benefits.

But certainly in terms of, you know, tangible achievements from this agreement right now, you know, Microsoft is experiencing certainly a benefit to their margins, their profitability.

And again, being able to access those models from OpenAI, if they reach that AGI, artificial general intelligence threshold, is a key change.

So I

I definitely think Microsoft emerges the stronger one from this deal, but we'll see what things look like in one, two, three years from now.