Microsoft will invest $10 billion in OpenAI ChatGPT, the company that owns ChatGPT
OpenAI was founded by Tesla Inc CEO Elon Musk and investor Sam Altman, made the ChatGPT chatbot accessible for free public testing on November. 30. Chatbots are software program that is designed to simulate human-like conversations based on user prompts.Microsoft Corp is looking about investing $10 billion in OpenAI which is the company that owns ChatGPT and will place the worth of the San Francisco-based company at around $29 billion, Semafor published on Monday, in a report citing individuals who have knowledge of the issue. The investment is also a mix of venture companies as well as deal papers that were made available to potential investors in recent weeks, with an goal of closing the round by 2022, the report stated. Microsoft did not comment, and OpenAI did not respond immediately to Reuters’ request for comments. This comes in response to an Wall Street Journal report that claimed that OpenAI was discussing selling existing shares for around $29 billion value with venture capital companies like Thrive Capital, and Founders Fund buying shares from existing shareholders. OpenAI was established with Tesla Inc CEO Elon Musk and investor Sam Altman, made the ChatGPT chatbot free for public testing on November. 30. Chatbots are software program that is designed to simulate human-like conversations based on user instructions. The Semafor report noted that the terms of funding included Microsoft receiving 75% of the profits from OpenAI until it has recouped the initial investment when OpenAI discovers how to earn money from ChatGPT and other tools like Dall-E, a tool for creating images. When it is at that point, Microsoft would have a 49 percent stake in OpenAI with other investors taking an additional 49% of the company, with OpenAI’s non-profit parent company receiving 2percent The report stated that without defining the stakes until Microsoft received the money it paid back. Microsoft who invested $1 billion into OpenAI in the year 2019 was working on launching an improved variant of the search engine Bing that uses ChatGPT, the AI behind ChatGPT according to the Information published last week.