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Microsoft in Talks to Invest $10 Billion in OpenAI

Microsoft Corp is discussing investing up to $10 billion in OpenAI, the firm behind the popular platform ChatGPT.

Microsoft Logo
Microsoft Logo

The funding is expected to be part of a "complicated deal" in which Microsoft will gain about 75% of OpenAI's profits until the firm recoups the initial investment. After recoupment, Microsoft will hold about 49% of OpenAI, other investors will take the remaining 49% stake, and OpenAI's nonprofit parent will hold a 2% stake. However, it needs to be clarified if the deal has been finalized.

Microsoft's Potential Investment in OpenAI

The potential investment comes amid speculation that Microsoft plans to incorporate OpenAI's technology into its Office and email software. OpenAI surged in popularity after the firm unveiled its ChatGPT platform - a chatbot capable of generating detailed and articulated responses following simple inputs. The release of the chatbot spurred widespread speculation over how the nature of writing could change in the coming years, especially as the technology is finetuned.