Elon Musk claiming last night that the reason open AI exists after a 50 million

dollar investment but he was also vocal about the issue he now has with that

company and Deirdre Bosa is digging into that a little bit this morning on Tech Check. Hey, Dee.

Hey guys, lots to peel from that interview last night, which you guys have been doing all morning.

And what stood out to someone in the tech world were his comments on

Microsoft and open AI. I do worry that Microsoft actually may be more in control

than say the leadership team at Open AI realizes.

As part of the Microsoft investment, they have rights to all of the software, all of the model

weights, and everything necessary to run the inferent system.

Satya Nadele responded to the C.M.C. saying that's factually not correct, noting that

Microsoft has a non-controlling interest, but that unusual deal structure behind the $10 billion investment essentially

allowed Microsoft to bypass an antitrust review process, also receive a large profit share

and an exclusive license, and a powerful engine, of of course to go head to head with

Google which had the lead in generative AI which brings up this decade old question

in tech will the big players ultimately eat the lunch of the incumbents. We've seen it time and time again.

One venture capitalist put it this way to me this morning.

He said the problem with the space is that it's really expensive to play.

You could build a website back in the 90s pretty easily and just play, but you can't really

do that in this space unless you have billions of dollars, at least not until costs come all the

way down. And he's referring guys to cloud or computing costs to run generative AI models like Chad,

GPT and Bard, which are very, very expensive.

That guys may ultimately be what powers the next leg

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