Last updated: January 11, 2023, 11:16 AM IST
Microsoft plans to invest $10 billion in OpenAI, the owner of the popular AI platform ChatGPT, which will value OpenAI at nearly $29 billion, media reported Tuesday.
News portal Semafor reported, citing people familiar with the matter, that it is still unclear whether the deal has been finalized, but “documents sent to potential investors in recent weeks detailing the terms indicated an intended closing by the end of 2022”.
Microsoft’s $10 billion investment will see it get 75 percent of OpenAI’s profits “until it recoups its investment,” the report said.
“After that threshold is reached, it would revert to a structure that reflects OpenAI ownership, with Microsoft holding a 49 percent stake, other investors taking another 49 percent, and OpenAI’s nonprofit getting 2 percent,” it claimed. report.
Microsoft and OpenAI have not commented on the report.
The tech giant had invested $1 billion in OpenAI in 2019.
ChatGPT opened to the general public last month and invited users to get feedback and learn about its strengths and weaknesses.
AI-powered ChatGPT gives human-like answers to questions and has become very popular on social media, with people asking him to write poems for essays.
Microsoft is now pushing ChatGPT applications for solving real problems.
The tech giant is also reportedly adding OpenAI writing technology to Office, giving users a way to compose the text for projects by incorporating AI technology into its apps.
The company wants to integrate AI created by OpenAI into Word, Outlook, Powerpoint and other apps, The Information reported.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)