Microsoft invests billions in ChatGPT-maker OpenAI. On Monday, Microsoft disclosed a new investment in ChatGPT maker OpenAI that will span multiple years and billions of dollars.
Semafor reported earlier this month that Microsoft was in talks to invest as much as $10 billion, but Microsoft declined to disclose a particular dollar amount. Microsoft also refused to provide a specific dollar amount.
The transaction ushers in the third stage of the cooperation between the two businesses, following on the heels of Microsoft’s earlier investments in 2019 and 2021. Microsoft has stated that the extended relationship will help both firms commercialize advanced technology in the future and will expedite discoveries in artificial intelligence research.
As stated in a blog post by Microsoft CEO Satya Nadella, “We created our relationship with OpenAI around a common aim to responsibly promote cutting-edge AI research and democratize AI as a new technology platform.” OpenAI is an organization that works to advance artificial intelligence research.
OpenAI has close ties with Azure, the cloud service offered by Microsoft. In July 2019, Microsoft provided financial support to OpenAI for one billion dollars. As a result of this investment, Microsoft became OpenAI’s “exclusive” provider of cloud computing services. Microsoft announced Monday that it would maintain Azure’s role as OpenAI’s sole provider.
According to the statement, Microsoft’s investment would also assist the two companies in engaging in supercomputing at scale and developing new AI-powered experiences.
Researchers in the field of artificial intelligence has placed OpenAI as one of the top three AI labs in the world. Additionally, the business has built game-playing AI software capable of besting human players in video games like Dota 2. However, it is arguable that its AI text generator GPT-3, and its wacky AI picture generator Dall-E have garnered more attention than its other features.
The chatbots used in the past in Silicon Valley were less technologically proficient and imaginative than ChatGPT, which uses written cues to generate text in an automated method. Late in November, the program was released to the public, and it became an internet phenomenon almost immediately. Tech executives and venture capitalists gushed about it on Twitter, and some even compared its release to Apple’s introduction of the iPhone in 2007.
The technology has also attracted the attention of executives at Google, who stated in a recent all-hands meeting that even though Google possesses AI capabilities comparable to those of its competitors, the company’s reputation could be damaged if it moves too quickly on AI chat technology.
The founders of OpenAI were Sam Altman, Greg Brockman, Ilya Sutskever, Wojciech Zaremba, and John Schulman. Elon Musk, CEO of Tesla and SpaceX, was also one of the founders. The group committed to investing more than a billion dollars when the business was first started. In February 2018, Musk stepped down from his role as a board member, but he continued to contribute financially.