Microsoft to invest more in OpenAI as tech race heats up
Reuters
Published Jan 23, 2023 09:29AM ET
Updated Jan 23, 2023 10:56AM ET
By Jeffrey Dastin
(Reuters) -Microsoft Corp on Monday announced a further multibillion dollar investment in OpenAI, deepening ties with the startup behind the chatbot sensation ChatGPT and setting the stage for more competition with rival Alphabet (NASDAQ:GOOGL) Inc's Google.
Recently touting a revolution in artificial intelligence (AI), Microsoft (NASDAQ:MSFT) is building on a bet it made on OpenAI nearly four years ago, when it dedicated $1 billion for the startup co-founded by Elon Musk and investor Sam Altman.
It has since built a supercomputer to power OpenAI's technology, among other forms of support.
Microsoft in a blog post has now announced "the third phase" of its partnership "through a multiyear, multibillion dollar investment" including additional supercomputer development and cloud-computing support for OpenAI.
Both companies will be able to commercialize the AI tech that results, the blog post said.
A Microsoft spokesperson declined to comment on the terms of the latest investment, which some media outlets earlier reported would be $10 billion.
Microsoft is committing even more resources to keep the two companies at the forefront of artificial intelligence via so-called generative AI, technology that can learn from data how to create virtually any type of content simply from a text prompt.
OpenAI's ChatGPT, which produces prose or poetry on command, is the prime example that last year gained widespread attention in Silicon Valley.
Microsoft last week said it aimed to imbue such AI into all its products, as OpenAI continues to pursue the creation of human-like intelligence for machines.
Microsoft has started adding OpenAI's tech to its search engine Bing, which for the first time in years is being discussed as a potential rival to Google, the industry leader.
The widely anticipated investment shows how Microsoft is locked in competition with Google, the inventor of key AI research that is planning its own unveil for this spring, a person familiar with the matter previously told Reuters.
Microsoft's bet comes days after it and Alphabet each announced layoffs of 10,000 or more workers. Redmond, Washington-based Microsoft warned of a recession and growing scrutiny of digital spend by customers in its layoff announcement.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.