Microsoft Announces $10 Billion Investment in ChatGPT-Maker OpenAI
On Monday, Microsoft announced a multibillion-dollar investment deal with ChatGPT-maker OpenAI.
ChatGPT is OpenAI’s artificial intelligence tool that automatically generates text based on written prompts. According to CNBC, “The software debuted in late November and quickly turned into a viral sensation as tech executives and venture capitalists gushed about it on Twitter, even comparing it to Apple’s debut of the iPhone in 2007.”
Monday’s announcement is the third phase of the partnership between the two companies, following Microsoft’s previous 2019 and 2021 investments. The collaboration is believed to “accelerate breakthroughs in AI and help both companies commercialize advanced technologies in the future,” CNBC reported.
The investments will allow Microsoft access to the most popular and advanced artificial intelligence systems while the company competes with Alphabet Inc., Amazon.com Inc., and Meta Platforms Inc, per Yahoo Finance. In return, OpenAI “needs Microsoft’s funding and cloud-computing power to crunch massive volumes of data and run the increasingly complex models that allow programs like DALL-E to generate realistic images based on a handful of words, and ChatGPT to create astonishingly human-like conversational text.”
Although Microsoft declined to disclose the exact dollar amount of the deal, according to Semafor, the technology corporation is expected to invest as much as $10 billion.
