Microsoft eyes $10B investment in ChatGPT developer
Christopher Hutton
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Microsoft is considering investing up to $10 billion into the developer of a chatbot that can create essay-length answers and solve difficult problems, a consideration reflective of growing interest in the company’s AI products.
The software giant has been meeting with the artificial-intelligence-focused foundation OpenAI with the intent of investing billions into the company following its successful launches of AI image generators and the textbot ChatGPT, according to Semafor. These same investments are being considered at the same time that Microsoft is considering using ChatGPT to enhance its Bing search engine.
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The investment could involve other venture firms and would value OpenAI at $29 billion. It remains unclear if the deal has been finalized, but documents sent to investors outlined an intended close at the end of 2022. The valuation echoes similar estimates provided to investors about selling shares for the company.
Microsoft invested $1 billion in OpenAI in 2019 in an initial investment and has established a strategic partnership with the company to develop advanced AI via Microsoft’s cloud computing service, Azure. The initial $1 billion has helped the startup’s profile grow exponentially through its development of AI image generators and ChatGPT.
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ChatGPT went viral in December, with users using the bot to write school-level essays and answer complex coding and mathematical queries. The app has also drawn scrutiny from teachers concerned about the tool being used for cheating. At least one school district has barred the use of the software.
The software is also facing regulatory pressure overseas. The Cyberspace Administration of China announced in December that it was implementing rules that would ban the use of AI-generated images like deepfakes for “fake news” purposes.