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Microsoft to Invest a ground-breaking investment in OpenAI, the parent company of ChatGPT, an AI services provider, for $10 billion, representing a 49% interest in the company.
This might be a game-changer for Microsoft because it will allow them to access cutting-edge technology and generate strategic income once their original investment is recovered. It is obvious that this is no little deal!
With their investment, Microsoft would receive a 49% ownership in OpenAI, with the remaining 49% being divided between other investors. The charitable nonprofit that runs OpenAI took 2%.
OpenAI is currently seeking money at a massive $29B valuation and allowing early investors to pay out thanks to Microsoft’s billion-dollar commitment in 2019.
Last year, Microsoft disclosed intentions to include OpenAI’s image-generation tools into Bing, its search engine. Similar initiatives are being made for ChatGPT as Microsoft aims to compete with market leader Google Search, according to a recent Information report.
Semafor claims that until OpenAI recovers its initial investment, Microsoft will also receive 75% of the company’s income. Following that, according to Semafor, Microsoft would own 49% of OpenAI, followed by 49% from other investors and 2% for the nonprofit parent of OpenAI.
Microsoft has previously invested about $1 billion in OpenAI.
