Home Press Release Microsoft plans to invest $10 billion in ChatGPT AI, a groundbreaking technology

Microsoft plans to invest $10 billion in ChatGPT AI, a groundbreaking technology

If OpenAI reaches that point, Microsoft would own 49% of it.

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Microsoft Corp. is in talks to give OpenAI, the company that owns and runs ChatGPT, a $10 billion investment. Semafor claimed on Monday that this will increase the company’s valuation to $29 billion, citing knowledgeable sources in the sector.
The report claims that more venture firms contributed to the cash. In order to close the financing by 2022, deal documents were recently distributed to prospective investors.
Both Microsoft and OpenAI declined to comment, and neither did so right away.
This is in response to a Wall Street Journal report that said venture capital firms like Thrive Capital or Founders Fund would buy shares from current shareholders if OpenAI decided to sell its existing shares at a price of about $29 billion.

Elon Musk, the CEO of Tesla, and investor Sam Altman launched OpenAI. On November 30, the ChatGPT chatbot was made freely available for public testing. ChatGPT is capable of considerably more than what is often possible with chatbots, which are software programs created to mimic human-like discussions with user prompts.

Microsoft was entitled to receive 75% of OpenAI’s income, according to Semafor. Once OpenAI has figured out how to make money with ChatGPT and other goods like Dall-image E’s production tool, it will then be able to recover its initial investment.

If OpenAI reaches that point, Microsoft would own 49% of it. According to the report, additional investors would receive the remaining 49%, while the nonprofit parent of OpenAI would receive 2%.

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