Microsoft (MSFT) may invest $10 billion in ChatGPT creator OpenAI
There were recent reports of Microsoft utilizing ChatGPT's AI technology to upgrade Bing's search results and responses to queries.
It would seem that Microsoft and ChatGPT developer OpenAI are getting more snug in business with each other. After recent reports that Microsoft may be utilizing ChatGPT technology to expand its Bing search engine’s capabilities, new reports are now suggesting that Microsoft is preparing to make a huge investment in OpenAI. Said investment could work itself out to a total of roughly $10 billion USD.
The report of Microsoft’s investment in OpenAI comes from a report at Semafor. According to said report, this investment would be part of a current round of funding at OpenAI. If said investment is made, it (alongside other investments) could push OpenAI’s valuation past $29 billion. Moreover, sources familiar with the ongoing business between Microsoft and OpenAI have shared that Microsoft will reportedly take a 75 percent share of OpenAI’s profits until its investment is recouped. After that, Microsoft would seemingly assume a 49 percent stake in OpenAI.
News of Microsoft possible major investment in OpenAI comes right after the two were said to be collaborating on the improvement of Bing utilizing ChatGPT technology. While the CEO of OpenAI has some misgivings about whether ChatGPT’s AI technology is good enough to be used in this way, the two have been bedfellows in investment and technology development for quite some time. This isn’t even the first time Microsoft has invested in OpenAI, having made a previous $1 billion USD investment back in 2019.
Nonetheless, it seems Microsoft is highly interested in everything OpenAI has going on at the moment. It will be some time before the current round of funding concludes, but once the dust clears, it seems Microsoft will have a sizeable position in the AI tech space with OpenAI and ChatGPT. Stay tuned as we continue to follow this story for further updates.
TJ Denzer posted a new article, Microsoft (MSFT) may invest $10 billion in ChatGPT creator OpenAI