ChatGPT Parent Open AI Gets ‘Game Changing’ Multibillion-Dollar Boost From Microsoft

Topline Microsoft is investing billions more dollars into the burgeoning artificial intelligence company OpenAI as its ChatGPT chatbot gains popularity, the companies announced

Monday. Key Facts Specific financial terms of the “multiyear, multibillion” deal were not shared, but a source told Bloomberg it’s a $10 billion investment, matching reports

earlier this month on the size of the investment and expanding upon the $1 billion Microsoft invested in OpenAI in 2019. Microsoft shares jumped 1% in early trading, and the

stock is now up 7% since January 9 when reports first emerged on Microsoft nearing putting $10 billion into OpenAI. The “next phase” of Microsoft and OpenAI’s partnership

will give the former “access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications,” Microsoft CEO Satya Nadella said in a statement

accompanying the release.Key Background A $10 billion investment from Microsoft would value OpenAI at $29 billion, Semafor reported earlier this month, though it’s unknown

if that valuation holds under the finalized terms. ChatGPT launched to the public last November to widespread wonderment at the model’s ability to replicate human speech. The

OpenAI announcement comes five days after Microsoft announced it will cut 10,000 jobs this year, representing about 5% of its total workforce. Nadella named AI as one of the chief

reasons for the layoffs in an email to employees: “The next major wave of computing is being born with advances in AI, as we’re turning the world’s most advanced models into a new

computing platform.”