Microsoft Invests Billions in OpenAI, The Company Behind ChatGPT

On Monday, Microsoft announced a new multiyear, multibillion-dollar investment with OpenAI, the company behind the development of the language model ChatGPT. While Microsoft did not disclose the specific dollar amount, reports suggest that the investment may be around $10 billion. This marks the third phase of the partnership between the two companies, following Microsoft’s previous investments in 2019 and 2021.

The renewed partnership aims to accelerate breakthroughs in AI and help both companies commercialize advanced technologies in the future. OpenAI works closely with Microsoft’s cloud service Azure, and the investment will also help the two companies engage in supercomputing at scale and create new AI-powered experiences. OpenAI is considered by AI researchers as one of the top three AI labs worldwide and has developed game-playing AI software that can beat humans at video games like Dota 2.

However, it has received more attention for its AI text generator GPT-3 and its quirky AI image generator Dall-E. ChatGPT automatically generates text based on written prompts in a fashion that’s much more advanced and creative than the chatbots of Silicon Valley’s past. The chatbot debuted in late November and quickly turned into a viral sensation as tech executives and venture capitalists gushed about it on Twitter, even comparing it to Apple’s debut of the iPhone in 2007.