US tech giantMicrosoft prepare an investment from 10 billion dollars in OpenAIthe startup behind the popular AI-powered chat ChatGPTas reported by the Semafor website.
According to rumors, it is a series of loans with other investors involved that would evaluate OpenAI at 29 billion dollarsSemafor said, citing people familiar with the incidents.
For several weeks, the tech world has been abuzz with OpenAI’s chatbot, ChatGPT. The technology used is a model of natural language processing, which means it is designed to generate text that looks like it was written by a human. Since launching at the end of November the ChatGPT has been picking up one million users in less than a week.
It’s unclear whether the deal has been finalized, but terms sent to prospective investors indicated the plan was expected to close by the end of 2022, Semafor said.
Here are the details of the Microsoft-OpenAi agreement
Microsoft will reportedly take the 75% of OpenAI’s profits until it recoups its investment, after which the company will take a stake of 49% in OpenAI.
OpenAI’s ChatGPT could help Microsoft gain strength in web search, a market currently completely dominated by the Menlo Park, California-based giant. Google.
The browser Bing Microsoft holds only a small share of the global search engine market, however the deal is hoped to help the company chip away at Google’s dominance by offering more advanced search capabilities.
In December, Morgan Stanley released a report that looked into ChatGPT’s relationship with Google and whether the chatbot is a threat to the web giant. Brian Nowakan analyst at Morgan Stanley specializing in Alphabet, wrote that chat language models could capture market share “and disrupt Google’s leadership as an entry point for people to the Internet.”
What is OpenAI and how does it work
OpenAI, founded by the entrepreneur of Silicon Valley, Sam Altman in 2015, it launched ChatGPT at the end of November 2022. Despite the optimism attached to its potential, the project is burning through millions of dollars every day due to the enormous level of pressure on servers resulting from its virality. Five days after OpenAI’s public launch of ChatGPT, Altman said the chat search tool had reached 1 million users.
The new technology is based on the language model GPT-3 of OpenAI and comes after a year of progress in the head of artificial intelligence. The company’s Dall-E image generation model, which takes written suggestions for synthesizing art and other images, has also given rise to widespread debate about the infusion of artificial intelligence into the creative industries. OpenAI is already working on a successor GPT-4 model for natural language processing.