Microsoft may back ChatGPT Creator with $10 billion investment
Microsoft is in talks to invest an additional $10 billion in OpenAI, creator of the hugely popular chatbot ChatGPT, according to a Semafor report released on Tuesday.
The report, which quotes people familiar with the matter, says the proposal currently asks Microsoft to inject money over several years. If the deal goes through, it is expected to value OpenAI, an AI research lab founded by Elon Musk and Sam Altman among others, at $29 billion.
The deal would potentially increase Microsoft’s stake to 49%, according to Semafor, and also includes a clause giving the Seattle-based tech giant 75% of OpenAI’s profits until the investment is recouped. Microsoft backed the AI research company in 2019 with an investment of $1 billion in cash and cloud credits.
Microsoft is reportedly working to launch a version of its Bing search engine that’s powered by the artificial intelligence technology used in ChatGPT before the end of March as it seeks to leapfrog Google.
ChatGPT, an AI-powered chatbot, gained mainstream attention last year for its ability to answer text questions in a human-like manner based on written prompts and carry on a conversation. It offers answers (even poetry) that are more sophisticated and creative than previous Silicon Valley chatbots.
Microsoft declined to comment. OpenAI did not respond to a request for comment.