Microsoft Lines Up $10 Billion Investment in OpenAI After ChatGPT Creates Buzz

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After the ChatGPT chatbot beta created a buzz in the market following its launch, Microsoft has announced plans to make huge investment in the artificial intelligence field.

“Today, we are announcing the third phase of our long-term partnership with OpenAI through a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world,” Microsoft said in a blog post.

The Microsoft logo is shown on the Microsoft Theatre at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, U.S. June 13, 2017
Mike Blake/Reuters

AI Supercomputing

The investment extends Microsoft’s ongoing collaboration across AI supercomputing and research and will enable it independently commercialize the resulting advanced AI technologies, the post said.

“We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform … In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications,” Satya Nadella, Chairman and CEO of Microsoft, said.

Challenging Google

With its successful collaboration with OpenAi, Micrsoft is challenging the dominance of Google. The other day, Google parent Alphabet said it was boosting its AI research.

The chatbot unveiled by OpenAi at the end of December stunned the artificial intelligence followers as it could carry out a multitude of tasks including writing essays, solving mathematical questions, writing software codes and even creating games.

Surge in Nvidia Shares

According to Yahoo Finance, the expected success of ChatGPT has already caused a surge in chipmaker Nvidia shares. The rapid growth of ChatGPT usage is likely to result in a $3 billion to $11 billion sales for Nvidia over 12 months, according to the Citigroup.

Wider Goals of Microsoft

According to The Information, Microsoft would mull incorporating ChatGPT into its Bing search engine. This is seen as a great way to redeem the ground lost to Google in search. Microsoft could even incorporate the AI bot’s features into its hugely popular Word, PowerPoint and Outlook.

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I am an editor for IBW, focusing on business and entrepreneurship. I love uncovering emerging trends and crafting stories that inspire and inform readers about innovative ventures and industry insights.