Microsoft wants to spend $10 billion in OpenAI, the business behind the popular artificial intelligence application ChatGPT, according to a Semafor report.
According to sources familiar with the subject, the investment is part of a fundraising round with other investors that would value OpenAI at a stunning $29 billion.
Although it is unclear whether the agreement has been finalized, term sheets offered to prospective investors suggested that the intention was to close the purchase by the end of 2022, according to Semafor.
Microsoft will reportedly get 75% of OpenAI profit until it recoups its investment, at which point the corporation will own 49% of OpenAI. When contacted Microsoft and OpenAI, neither company immediately responded.
ChatGPT has been the talk of the IT industry for some weeks. The tool is a natural language processing model, which means it is intended to create content that looks to have been written by a person. The AI model, which is a variation of the GPT-3 family of broad language models, has been utilized for anything from code development to college essay writing.
An investment on ChatGPT might aid Microsoft’s efforts in web search, which is dominated by Google. Although the business’s Bing browser has a modest percentage of the worldwide search engine market, it is believed that the transaction would help the company chip away at Google’s supremacy by providing more complex search capabilities.
Morgan Stanley produced a research in December assessing whether ChatGPT poses a danger to Google. Language models, according to Brian Nowak, the bank’s top Alphabet analyst, may grab market share “and undermine Google’s position as the entry point for users on the Internet.”
OpenAI, created in 2015 by Silicon Valley entrepreneur Sam Altman, released its ChatGPT accessible to the general public in late November. Despite its promise, the project is losing money owing to the excessive amount of load on its servers as a result of its virality. Altman said that ChatGPT has reached 1 million users five days after it was launched by OpenAI.