❗️ Microsoft is planning to invest $10 billion in OpenAI, the startup behind popular artificial intelligence tool ChatGPT, according to a report from Semafor.
✅ The deal is part of a funding round with other investors involved that would value OpenAI at a whopping $29 billion.
The plan is to close the deal by the end of 2022, Semafor reported.
✅ Microsoft will reportedly get a 75% share of OpenAI’s profits until it makes back the money on its investment, after which the company would assume a 49% stake in OpenAI.
❗️ Why investment in ChatGPT?
✅ ChatGPT has gained popularity, as a natural language processing model, meaning it is designed to generate text that appears as though a human wrote it.
The AI model, has been used for everything from developing code to writing college essays.
A bet on ChatGPT could help Microsoft boost its efforts in web search, a market dominated by Google.
✅ The company’s Bing browser has only a small share of the global search engine market, however it is hoped the deal could help the firm chip away at Google’s dominance by offering more advanced search capabilities.
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