Microsoft to invest $10 billion in OpenAI
Business
Software Giant aims to challenge Google Search by using ChatGPT
(Reuters) - According to persons familiar with the situation Microsoft Corporation is in discussions to invest $10 billion in OpenAI, the company that owns ChatGPT, as part of financing that will value the company at $29 billion, Semafor has reported.
The news highlights growing interest in the artificial intelligence firm whose chatbot has astounded both novices and professionals with its capacity to spout haikus, debug code and respond to inquiries while mimicking human speech.
Documents emailed to potential investors in explanation of its parameters have indicated a projected closing by the end of 2022 and cash might possibly come from other venture companies, the newspaper published.
The software giant had committed $1 billion in Elon Musk and Sam Altman s OpenAI in 2019. The computational capacity required for AI firms is also provided by Microsoft s cloud services division.
Microsoft had revealed intentions to include OpenAI s image-generation tools in its Bing search engine last year. Similar plans for ChatGPT are reportedly in the works as Microsoft aims to challenge market leader Google Search, according to a recent Information article.
Microsoft will also receive 75 percent of OpenAI s income up until it recovers its initial investment, according to Semafor. After reaching that point Microsoft would own 49 percent of OpenAI while other investors would own another 49 percent and OpenAI s nonprofit parent organization would own two percent.
