Microsoft plans $10 billion investment in ChatGPT owner OpenAI- Report By Investing.com


© Reuters.

Amber Warwick

Investing.com — US Technology Giant Microsoft (NASDAQ:) is in talks to invest up to $10 billion in artificial intelligence company OpenAI, the company behind the hugely popular platform ChatGPT, news outlet Semafor reported Tuesday.

The funding also includes other venture capital firms, putting OpenAI at a valuation of around $29 billion, Semafor reports. The funding is expected to be part of a “convoluted deal” in which Microsoft will capture approximately 75% of OpenAI’s profits until it recoup its initial investment.

After the sale, Microsoft will own approximately 49% of OpenAI, other investors will acquire the remaining 49% stake, and OpenAI’s non-profit parent company will own a 2% stake. However, it is unclear if a deal was struck.

The report comes amid speculation that Microsoft plans to incorporate OpenAI’s technology into its Office and email software. Microsoft reportedly invested about $1 billion in cash and cloud credits in OpenAI in 2019 and was in talks to increase its stake in the company.

OpenAI’s popularity skyrocketed in recent months after the company announced its ChatGPT platform. It has spurred widespread speculation about

However, for the time being, ChatGPT is reportedly very costly to operate. OpenAI founder Sam Altman recently said it costs his company a few cents each time he uses the bot to generate text.

Still, artificial intelligence is expected to become a business-disrupting force in the years to come. OpenAI’s image generation tool, DALL-E, has also garnered both praise and controversy for its ability to create high-quality digital images from simple prompts.

Microsoft and OpenAI were not available for comment outside of business hours.



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