The businesses seek to stay at the forefront of generative artificial intelligence — technology that can produce text, images, and other material in response to brief instructions — with Microsoft’s huge pockets and OpenAI’s cutting-edge artificial intelligence. ChatGPT, a chatbot that provides replies in concise, punctuated prose, gained notoriety after its unexpected launch at the end of November. It served as a metaphor for a new, more potent wave of AI.
Microsoft announced on Monday that it is investing “multi years, billions dollars” in OpenAI, the San Francisco artificial intelligence research centre that created the ChatGPT online chatbot.
The particular financial details of the agreement were not disclosed by the parties, but a source with knowledge of the situation stated Microsoft will contribute $10 billion to OpenAI.
The new agreement is a blatant statement of the value of OpenAI’s technology to Microsoft’s future and its competition with other major tech companies like Google, Meta, and Apple. Microsoft had already committed more than $3 billion to OpenAI.
The businesses seek to stay at the forefront of generative artificial intelligence — technology that can produce text, images, and other material in response to brief instructions — with Microsoft’s huge pockets and OpenAI’s cutting-edge artificial intelligence. ChatGPT, a chatbot that provides replies in concise, punctuated prose, gained notoriety after its unexpected launch at the end of November. It served as a metaphor for a new, more potent wave of AI.
These technologies, which are the result of more than ten years of research at organisations like OpenAI, Google, and Meta, are about to revolutionise everything from photo and graphics editors like Photoshop to online search engines like Google Search and Microsoft Bing.
The agreement comes after Microsoft revealed last week that it has started laying off staff as part of a plan to eliminate 10,000 positions. It estimated that the adjustments, which would include severance pay, lease terminations, and “changes to our hardware portfolio,” would cost $1.2 billion.
The company’s CEO, Satya Nadella, stated last week that the changes will allow the business to emphasise on goals like artificial intelligence, which he called “the next significant wave of computing.”
Developers and organisations from all industries would have access to the greatest AI infrastructure, models, and tool chain, Nadella stated in his company’s statement on Monday. This will be the main focus of the partnership’s upcoming phase with OpenAI.
