Microsoft Increases Its Stake In ChatGPT By $10 Billion

Microsoft Increases Its Stake In ChatGPT By $10 Billion:

Microsoft will contribute $10 billion to Open-AI, the company behind ChatGPT.
With its relationship with Open-AI, the tech giant hopes to maintain its position as a leader in generative artificial intelligence.

The statement came just one week after the business said it would be letting go of 10,000 employees due to a slowing demand for software. Microsoft said in that statement that it will continue to employ and invest in its top priorities. On Tuesday, the software developer releases financial results for the second quarter. Microsoft did not reveal the amount of its contribution on Monday, but a source familiar with the matter said that it amounts to $10 billion over many years.


$10 Billion To Open-AI By Microsoft:

Since its launch in late November, ChatGPT has exploded online, gaining a million members in less than two weeks. Its capacity to mimic actual people’s speech and writing has raised worries about its potential to displace professional writers and complete kids’ schoolwork. The technology has furthermore been referred to as a possible danger to Google’s primary search operation.

OpenAI With Microsoft:

The new agreement is a blatant statement of the value of Open-AI’s technology to Microsoft’s future and its competitiveness with other major tech firms like Google, Meta, and Apple. Microsoft had previously committed and over $3 billion in Open-AI. The agreement comes after Microsoft declared last week it has started to lay off staff in an attempt to eliminate 10,000 jobs.

It estimated that the adjustments, which would include severance pay, lease terminations, and “changes to our hardware portfolio,” would cost $1.2 billion.

Previous Agreements:

Following Microsoft’s activities to bring in 2019 and 2021, the agreement ushers in the third step of the two businesses’ collaboration. According to Microsoft, the alliance will help both businesses commercialism cutting-edge technology in the future and will hasten AI advances.

Official Statements:

CEO Satya Nadella of Microsoft said in a blog post, “We created our cooperation with Open-AI around a common aim to responsibly promote cutting-edge Research and democratise AI as just a new technology platform.

The relationship with Open-AI, so according Microsoft CEO Satya Nadella, is based on a “shared commitment to ethically promote cutting-edge AI research.”

Recently, Nadella revealed that ChatGPT would soon be available via MS Azure’s Open AI Service.


Businesses may now include the ChatGPT in their programs and apps in accordance with their demands.

The announcement was seen as Microsoft’s first move in adding ChatGPT support to its array of platforms, which includes Bing. Microsoft claims that a new “multiyear, multi-billion dollar commitment” would help it to strengthen its existing long-standing cooperation with Open-AI.

Where Is Money Coming From?

The money is coming just after reports surfaced that Microsoft will contribute $10 billion to Open-AI, the company behind well-known AI products including ChatGPT and DALL-E 2.
Microsoft also intends to use Open-AI’s models in a number of its consumer and business offerings.

Microsoft is allegedly getting ready to take on Google with the incorporation of ChatGPT into Search search results, and the business is apparently considering incorporating some speech Technology into its Word, Presentation, and Outlook programs.

After spending $billion dollars in Open-AI in 2019, Microsoft acquired an exclusive licence to the technology involved of GPT-3 in 2020. It has developed a tight collaboration with Open-AI and intends to integrate a DALL-E 2 driven AI text-to-image model into Bing.

Microsoft Will Invest $10 Billion:

Microsoft Corp. is investing $10 billion in Open-AI, whose ChatGPT artificial intelligence tool has dominated the web since its release in November, attracting more than a million users in a matter of days and igniting a new discussion about the use of AI in the workplace.

The additional backing is meant to provide Microsoft access to some of the most well-liked and sophisticated artificial intelligence systems, expanding on the $1 billion Microsoft invested in Open-AI in 2019 and another round in 2021.

Microsoft is vying for supremacy in the quickly developing technology that produces text, pictures, and other material in response to a brief command with Alphabet Inc., Inc., and Meta Platforms Inc.


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