© 2023 CyberNews- Latest tech news,
product reviews, and analyses.

Microsoft to throw $10 billion at ChatGPT - media

Microsoft is thinking of investing $10 billion into OpenAI, the owner of ChatGPT, AI-based chatbot. The move would boost the value of the San Francisco-based firm to $29 billion.

The funding includes other venture firms and deal documents were sent to prospective investors in recent weeks, with the aim to close the round by the end of 2022, Semafor reported, citing people familiar with the matter.

Microsoft declined to comment, while OpenAI did not immediately respond to Reuters' request for comment.

This follows a Wall Street Journal report that said OpenAI was in talks to sell existing shares at a roughly $29 billion valuation, with venture capital firms such as Thrive Capital and Founders Fund buying shares from existing shareholders.

OpenAI, founded by Tesla Inc CEO Elon Musk and investor Sam Altman, made the ChatGPT chatbot available for free public testing on November 30. A chatbot is a software application designed to mimic human-like conversation based on user prompts.

The Semafor report said the funding terms included Microsoft getting 75% of OpenAI's profits until it recoups its initial investment once OpenAI figures out how to make money on ChatGPT and other products like image creation tool Dall-E.

On hitting that threshold, Microsoft would have a 49% stake in OpenAI, with other investors taking another 49% and OpenAI's nonprofit parent getting 2%, the report said, without clarifying what the stakes would be until Microsoft got its money back.

Microsoft, which invested $1 billion in OpenAI in 2019, was working to launch a version of its search engine Bing using the AI behind ChatGPT, the Information reported last week.

ChatGPT has stormed the social media front since it was opened to the public. Cybernews research team discovered that ChatGPT could provide hackers with step-by-step instructions on how to hack websites.

More from Cybernews:

US ramps up space cyber defenses eyeing private businesses

Threat actors can use ChatGTP to create deployable malware

WhatsApp gets green light to pursue a lawsuit against Israel’s NSO Group

Princeton student designs app to catch ChatGPT-written essays

Apple’s mixed reality headset could be released this year

Subscribe to our newsletter

Leave a Reply

Your email address will not be published. Required fields are markedmarked