Technology

10 Billion Dollar Investment in OpenAI, Creator of ChatGPT from Microsoft

The rapprochement between Microsoft and OpenAI, the creator of ChatGPT, actually spans several years. However, new information shows that Microsoft is considering a big investment.

ChatGPT chat software, which was released a while ago, drove both ordinary users and artificial intelligence experts crazy. OpenAI, the company behind ChatGPT, the most popular artificial intelligence initiative of 2022, is on Microsoft’s radar. According to a source close to the company, Microsoft has started talks to invest $10 billion in OpenAI.

The proposal under discussion would require the Redmond, Washington-based software giant to invest the money in more than a few years. On the other hand, it is stated that the two companies have been discussing the agreement for months. On the other hand, OpenAI is currently thought to be worth $29 billion.

It’s Complicated And A Big Deal

For now, it’s unclear whether the deal is complete, but there have been documents sent to potential investors in recent weeks outlining the terms of the deal. Rumor has it that if the deal is reached, Microsoft will own 75% of OpenAI’s profits to recover the investment. However, Microsoft owns 49 percent of OpenAI shares, and other investors also own 49 percent, while the remaining 2 percent will be owned by the non-profit owners of OpenAI. As a result, the deal looks extremely complicated.

All these are rumors for now, but let’s underline that these rumors are strong. In addition, Microsoft and OpenAI representatives have not yet commented on the subject.

On the other hand, OpenAI’s ChatGPT software was built on the GPT-3 language model and attracted attention with its responsiveness to everything. The company also has a text rendering model called Dall-E. Also, OpenAI is currently working on the GPT-4 model.

Microsoft, on the other hand, has been familiar with OpenAI for a while and has been following it closely. In fact, 1 billion dollars was invested in 2019. In 2020, OpenAI licensed the GPT-3 model to the software giant. In addition, Microsoft is trying to integrate OpenAI’s technologies into other applications such as Office and Bing.

Ece Nagihan

Hello, I'm Ece, I write content for Expat Guide Turkey every day. Don't forget to check!

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