Microsoft in talks to invest $10 billion in ChatGPT creator OpenAI
At a valuation of $29 billion
Microsoft plans to invest $10 billion in OpenAI, the creator of viral artificial intelligence bot ChatGPT, according to a report from Semafor.
The deal is part of a funding round with other investors involved that would value OpenAI at $29 billion. It’s unclear whether this has been finalized, but term sheets sent to prospective investors indicated the plan was to close the deal by the end of 2022.
Microsoft will reportedly get a 75% share of OpenAI’s profits until it recoups its investment. After that, Microsoft would have a 49% stake in OpenAI, with other investors taking another 49% and OpenAI's non-profit parent getting 2%.
The Wall Street Journal reported in October that Microsoft, which had invested $1 billion in cash and cloud credits into OpenAI back in 2019, was in discussions to increase its stake.
Before the end of March, the software giant is also planning to launch a version of its search engine Bing that uses the artificial intelligence behind ChatGPT to answer search queries.
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