Microsoft intends to invest up to $10 billion in the artificial intelligence startup OpenAI in order to integrate ChatGPT into its web search engine Bing and Office products.
According to sources familiar with the situation, Microsoft and other venture firms are in talks to invest a sum that would value OpenAI at $29 billion.
The funding, which would include participation from other venture firms, would value OpenAI, OpenAI, at $29 billion, including the new investment. Although it is unclear whether the deal has been finalized, documents sent to prospective investors in recent weeks outlining its terms indicated a target close date of the end of 2022.
According to the reported agreement, Microsoft would receive 75 per cent of OpenAI profits until it recouped its initial $10 billion investment. After recouping its investment, Microsoft would take a 49 percent stake in the company, with the other investors sharing the remaining 49 percent, and OpenAI’s non-profit parent company receiving the remaining 2 percent.
It’s unclear whether the money OpenAI is spending on Microsoft’s cloud computing arm will be factored into the recoupment calculation.
The sources for this piece include an article in TheRegister.