Microsoft will reportedly inject USD 10 billion in funding for OpenAI, the artificial intelligence startup behind the ChatGPT chatbot.
A report from Semafor quoting a familiar source says this deal is part of funding with other investors that will make OpenAI's valuation worth USD 29 billion.
According to the report, the funding will involve other venture capitalists. It is not yet known if this deal has been completed, but according to the term sheet sent to prospective investors, it indicates plans to complete this deal by the end of 2022.
As part of this agreement, Microsoft will reportedly receive 75% of OpenAI's profits until the company created by Bill Gates returns capital from its initial investment.
After reaching that point, Microsoft will own 49% of shares in OpenAI, with other investors holding 49% and OpenAI's non-profit holding company receiving 2%, as quoted from Reuters, Thursday (12/1/2023).
OpenAI is currently known for several of its artificial intelligence products, including the chatbot ChatGPT that can be talked to via text and DALL-E that can create photorealistic images based on commands in text form.
The popularity of ChatGPT is accelerating since it was launched in November 2022. This chatbot can not only be talked to, but also answer questions, write lecture assignments, and even create malware.
Microsoft previously injected USD 1 billion into OpenAI in 2019. The startup founded by Sam Altman and Elon Musk also relies on Microsoft cloud services for its computing power.
Through the partnership, Microsoft will reportedly integrate the technology behind ChatGPT for some of its flagship products, including the Bing search engine, as well as productivity applications such as Word, PowerPoint and Outlook.