Microsoft is reportedly in talks to place a US$10 billion bet in OpenAI, the company behind ChatGPT, the popular artificial intelligence (AI) chatbot that was released to the public in November.
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Fast facts
- Microsoft’s US$10 billion funding, which involves other unnamed venture firms, will raise the San Francisco-based AI research firm’s valuation to US$29 billion, news outlet Semafor reported, citing people familiar with the matter.
- The deal reportedly involves Microsoft taking 75% of OpenAI’s profits until the initial investment is recouped.
- Microsoft will obtain 49% of the firm once the initial payment is recovered.
- OpenAI was founded in 2015 by entrepreneur and programmer Sam Altman, Tesla founder Elon Musk, computer scientists Ilya Sutskever, Wojciech Zaremba, John Schulman and researcher Greg Brockman
- ChatGPT, the AI-powered chatbot which gained over a million users in the first five days since launch, has been touted as a potential competitor to search engines like Google.
- ChatGPT has been used by cryptocurrency fans and traders for research, creating trading bots and coding assistance for developers.
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