Microsoft investing $10 billion in OpenAI, the company behind ChatGPT is likely the biggest tech acquisition ever and will drastically transform the field of artificial intelligence in the future. 😱
When OpenAI is valued at $29 billion, Microsoft will receive 75% of its earnings up until it recovers $10 billion. When they reach that mark, they will own 49% of OpenAI, along with 49% from other investors and 2% from the nonprofit parent of OpenAI. 👏
Microsoft has previously invested about $1 billion in OpenAI. It’s also working to add ChatGPT to its Bing search engine, seeking an edge on Alphabet Inc.’s dominant search offering.
The bot is capable of responding to queries in a natural and humanlike manner, carrying on a conversation, and answering follow-up questions, unlike the basic set of links that a Google search provides.
ChatGPT has lit up the internet since launching at the end of November, gathering its first million users in less than a week.
Its imitation of human conversation sparked speculation about its potential to supplant professional writers and even threaten Google’s core search business.
The organization behind it, co-founded by Elon Musk and Silicon Valley investor Sam Altman, makes money by charging developers to license its technology.
Still, concern about its accuracy — which Altman himself has said is not good enough for the bot to be relied on — has prompted caution about its premature use, and New York City schools have banned their students from accessing ChatGPT.
Furthermore, Satya Nadella is effectively engaging in a worldwide fight with dozens of productivity startups by strengthening his alliance with OpenAI to add GPT to the Microsoft Office suite. 😌
What’s more, this has the potential to directly alter how 1.4 billion people go about their daily lives.
