Microsoft is reportedly in talks to invest billions in OpenAI, the company that owns ChatGPT.
Microsoft, one of the world’s largest technology companies, is reportedly considering an investment of up to $10 billion in OpenAI, the creator of the language model ChatGPT. According to Semafor, the funding round is also expected to include other venture capital firms, and OpenAI is currently valued at around $29 billion.
The investment, if it goes through, would be a significant boost for OpenAI, which has been working to develop cutting-edge artificial intelligence technology. The company, founded in 2015 by Elon Musk, Sam Altman, and other prominent figures in the tech industry, is best known for its work on GPT-3, a language model that has been used in a wide range of applications, from chatbots to language translation.
Microsoft’s interest in OpenAI is not surprising, given the company’s focus on developing AI technologies. Microsoft has been investing heavily in AI in recent years, and has made a number of acquisitions in the field, including the purchase of Semantic Machines in 2018.
If the deal goes through, it would be one of the largest investments in the AI industry to date. The funding would allow OpenAI to continue its work on developing AI technologies, and potentially accelerate the pace of innovation in the field. It would also provide Microsoft with access to some of the most advanced AI technology in the world, giving it a competitive edge in the race to develop intelligent machines.
In conclusion, the possible $10 billion investment by Microsoft in OpenAI is a clear indication of the growing importance of artificial intelligence in the technology landscape. With the funding, OpenAI will be able to scale its efforts and continue to innovate in the field, while Microsoft will be able to gain access to cutting-edge AI technology. It remains to be seen whether the deal will materialize, but it certainly holds a lot of promise for both companies and for the future of AI.
To recoup its investment, Microsoft is expected to take 75% of OpenAI’s profits. When that happens, Microsoft will hold 49% of OpenAI, along with other investors who will have 49% stakes, and OpenAI’s nonprofit parent will have a 2% stake.
It is speculated that Microsoft plans to incorporate OpenAI’s technology into its Office and email software products, according to the report. According to previous reports, Microsoft has been considering increasing its investment in OpenAI in 2019. The company has invested around $1 billion in cash and cloud credits in 2019.
By Orlando J. Gutiérrez