According to a Semafor report, Microsoft intends to spend $10 billion in OpenAI, the startup that created the well-known artificial intelligence platform ChatGPT. According to those familiar with the situation, the purchase, which also includes additional investors, would value OpenAI at an astounding $29 billion. This information was provided on Tuesday by Semafor. Although term sheets offered to potential investors said the sale was to be closed by the end of 2022, it is unclear whether the agreement has been concluded, according to Semafor. According to reports, Microsoft will receive a 75% cut of OpenAI’s income up until it recovers its investment, at which point it will take a 49% ownership position in the company. When approached, Microsoft and OpenAI were not immediately available for comment.
The tech community has been buzzing about ChatGPT for a number of weeks. The programme is a natural language processing model, which means it is made to produce content that seems to have been written by a human. The AI model, which is a subset of the GPT-3 family of big language models, has been applied to a variety of tasks, including programming and college essay writing. By placing a wager on ChatGPT, Microsoft may be able to increase its efforts in the Google-dominated industry of web search. Although the company’s Bing browser only has a small part of the worldwide search engine market, it is believed that the transaction will enable the company to challenge Google’s hegemony by providing more sophisticated search features.