Microsoft is investing billions in OpenAI, which develops the popular ChatGPT language generator, Microsoft announced Monday.
Microsoft didn’t detail the exact amount it’s investing in OpenAI in its latest phase, describing it as “a multi-year, multi-billion dollar investment.” Semafor previously reported that the company was in talks to invest his $10 billion in the artificial intelligence company.
This investment adds to what Microsoft made with OpenAI in 2019 and 2021 and expands partnerships between companies as ChatGPT grows in popularity.
Released in November, this free tool is more advanced than previous technologies and automatically generates detailed text results based on your queries. The tool quickly became an internet sensation and became popular, but it also raised questions about how it was used. For example, schools are working on challenges that are introduced in the classroom, such as cheating on assignments, and some schools prohibit cheating.
Microsoft says it plans to increase investment “in the development and deployment of purpose-built supercomputing systems to accelerate OpenAI’s groundbreaking proprietary AI research.” Microsoft also plans to roll out OpenAI’s models to consumer and enterprise products.
Wedbush analysts Dan Ives and John Katsingris said ChatGPT is a “potential game changer” for Microsoft, and the investment is a “strategic step” for the company to “enhance its artificial intelligence strategy.” ” said.
In “today’s AI race,” Microsoft is “positioned ahead of the rest of the big techs, and this investment is a major notch in the AI belt,” analysts said in a company report.