– Microsoft is reportedly in talks to invest $10B in OpenAI, the creator of ChatGPT.
– The deal values OpenAI at $29B, with Microsoft owning up to 49% of the company.
– Other venture firms and investors could collectively own the remaining 51% of OpenAI.
Microsoft, the multinational tech corporation, is reportedly in talks to invest a substantial sum in OpenAI – the creator of ChatGPT. According to people familiar with the matter, the software giant is looking to invest $10 billion in the AI platform, which would value OpenAI at $29 billion.
The deal would mean that Microsoft could own up to 49% of OpenAI, while other investors could collectively own another 49%. OpenAI’s non-profit parent would own the remaining 2%. Documents pertaining to the deal have been sent to prospective investors recently.
The terms of the investment vary for each set of investors, including setting a profit cap. This is an unusual move for a venture deal, and it is unclear if the deal will go ahead as planned. The amount of the investment and the terms may change, and the deal could fall apart.
Microsoft’s investment in OpenAI would be a substantial move in the AI technology field. OpenAI’s ChatGPT, a natural language processing system, has already been used by a number of companies and organizations. The deal would give OpenAI access to Microsoft’s huge resources, allowing it to further develop its AI technology and expand its reach.
This is not the first time Microsoft has invested heavily in AI technology. The company has invested billions of dollars in the development of cloud-based AI services over the years. Microsoft’s Azure cloud platform is one of the most popular cloud computing platforms, and the company has invested heavily in the development of AI services that run on it.
It remains to be seen if the deal between Microsoft and OpenAI will materialize. If it does, then it could be a major boost for OpenAI, allowing it to further develop its AI technology and expand its reach. This could also be a strategic move for Microsoft, as the company looks to strengthen its position in the AI technology field.