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Windows Central
Windows Central
Technology
Jez Corden

OpenAI Sora dead, new funding "Ponzi scheme" ... is the end of OpenAI nigh, and will Microsoft end up picking up the pieces?

OpenAI CEO Sam Altman.

The death of Sora, a big restructure, and "Scam Altman" begin catching on — as analysts brand its new funding efforts a Ponzi scheme. Why does it feel like OpenAI is in chaos right now?

Microsoft was an early investor in OpenAI, and won itself some exclusivity to the firm's AI models, notably ChatGPT, which powers things like Microsoft Copilot and Github Copilot. However, over time, the two partners have overseen an increasingly fractured relationship. The core reason is money: OpenAI doesn't make any, and needs to keep raising new funds purely to keep the lights on. Microsoft's partnership with OpenAI has increasingly been seen as a limiting factor on the latter's ability to generate cash. OpenAI has been skirting around the edges of its contracts with Microsoft to the point where Microsoft has reportedly been considering suing the former for $50 billion.

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