Microsoft is considering investing in the ChatGPT Creator OpenAI and is set to invest US$10 billion
Microsoft is reportedly investing $10 billion in OpenAI. This AI research laboratory is the creator of the AI chatbot ChatGPT. ChatGPT is built on top of OpenAI’s GPT-3 family of large language models and is fine-tuned with both supervised and reinforcement learning techniques.
The news site, Semafor reported that Microsoft is set to invest 10 billion dollars in OpenAI as part of a funding round that would value the company at 29 billion dollars. It also reported that it’s not sure whether the deal has been finalized but term sheets sent to prospective investors indicated the plan was to close the deal by the end of 2022. “Microsoft, and particularly Azure, don’t get nearly enough credit for the stuff OpenAI launches. They do an amazing amount of work to make it happen; we are deeply grateful for the partnership. They have built by far the best AI infra out there,” Sam Altman, CEO of OpenAI said. Microsoft will reportedly get a 75% share of OpenAI’s profits until it makes back the money on its investment. Then the company would assume a 49% stake in OpenAI once that stage is passed. Other investors would also get 49% and OpenAI’snon-profit parent company would be left with 2% ownership. ChatGPT has been creating waves ever since it was made public in 2022. There are possibilities that such AI chatbots are used to carry out cyber-attacks and the CEO of OpenAI also says that entering into the era of AI, would be a risk. “The most that OpenAI, or any other company, can do is to steer the AI revolution a little. This will impact all aspects of society and will be an emergent thing created and shaped by all of us. Much much bigger than any company. Also, once a technological revolution starts, it cannot be stopped. But it can be directed, and we can continually figure out how to make the new world much better,” he says. ChatGPT is free to use and crossed a million users within a month of its launch.