New post Need visibility? Apply for a FREE post for your Startup.  Apply Here


Microsoft to Invest $10 Billion Into OpenAI

1 Mins read

Microsoft Corp is planning to invest $10 billion into OpenAI, the owner of ChatGPT, which will value the firm at $29 billion, Semafor reported on Monday.

Several venture capital firms are also contributing to the round, and deal documents were sent to investors last week. The deal is expected to close at the end of 2023, according to the report.

Microsoft declined to comment, while OpenAI did not immediately respond to Reuters’ request for comment.

This is coming after Wall Street Journal reported that OpenAI was in talks to sell existing shares at a roughly $29 billion valuation, with venture capital firms such as Thrive Capital and Founders Fund buying shares from existing shareholders.

OpenAI, founded by Tesla CEO Elon Musk and investor Sam Altman, made the ChatGPT chatbot available for free public testing on November 30. A chatbot is a software application designed to mimic human-like conversations based on user prompts.

In the Semafor report, Microsoft will receive 75 percent of OpenAI’s profits until it recoups its initial investment once OpenAI starts making money from ChatGPT and other products such as Dall-E, an image creation tool.

After hitting that threshold, Microsoft would own 49 percent of OpenAI, while other investors would hold 49 percent and OpenAI’s nonprofit parent would hold 2 percent, the report said, without specifying what those stakes would be after Microsoft recoup its initial investment.

135 posts

About author
There's this unexplainable joy I get whenever I write, knowing fully well that my copy will transform people's life and destiny. This rare feeling elates me and encourages me to write more value-packed pieces. I think a divine being has possessed me to write, that is why I write, Therefore, I will advise every of my piece should be regarded as a divine message.
Related posts
Artificial IntelligenceNewsRandom

Google Set To Launch Its Own AI Chatbot To Face Off ChatGPT

1 Mins read
The euphoria of ChatGPT has continued to send shivers up and down the technology space since its release in November 2022. Launched…

UK's Tech Nation to shut down operations after losing government funding

2 Mins read
Tech Nation, the startup backed by the UK government to bring thousands of talented tech workers to the UK, has announced that…
Artificial IntelligenceNews

Google's MusicLM: an AI that can create music from text prompts

2 Mins read
Researchers working with Google have recently developed an AI model called MusicLM. MusicLM is equipped with the capability to generate minutes-long musical…
Get powered up with Techpadi Newsletter

Be the first to know what's happening in the African tech space

Leave a Reply

Big StoryNews

CES 2023: Google Showcases Updated Android Auto App With Material You Redesign