Microsoft invests 1.3 trillion yen in OpenAI, which develops “ChatGPT”

0
3

Microsoft invests 1.3 trillion yen

It was revealed on the 10th that Microsoft, a major IT company, is in negotiations with OpenAI, which developed the AI ​​language model “ChatGPT,” for an additional investment of 1.3 trillion yen ($10 billion).

According to a report by overseas media Semafor based on an anonymous source, OpenAI is said to have been raising funds with the goal of completing it by the end of 2022. According to an investor memo, the company’s corporate valuation is 3.8 trillion yen. ($29 billion).

The additional $10 billion investment will give Microsoft 49% of OpenAI’s outstanding shares, with the remaining 49% held by other early investors, employees, and OpenAI’s non-profit organizations.

Although it is undecided, there is also an incidental condition that OpenAI will receive 75% of the profits raised by “ChatGPT” and image generation AI “Dall-E” until Microsoft recovers the initial investment.

OpenAI expects to generate $1 billion in revenue in 2024, according to a report to investors. The investment ratio until Microsoft recovers the funds has not been disclosed.

OpenAI and Microsoft

OpenAI was founded as a non-profit organization in 2016 by Tesla CEO Elon Musk and Y Combinator CEO Sam Altman. At the time of its establishment, it attracted attention after receiving a donation of $ 1 billion from a Silicon Valley celebrity. Although Musk stepped down from his leadership role at OpenAI in 2018, he continues to donate and advise him.

In March 2019, OpenAI announced a transition to a “capped for-profit company model” that limits the returns of investors and employees as a for-profit and non-profit hybrid company.

In July of the same year, Microsoft invested $1 billion in OpenAI and also established a multi-year strategic partnership to develop AI (artificial intelligence)-based infrastructure on Microsoft Azure. In 2020, Microsoft signed an exclusive license agreement for GPT-3 and will release the Azure OpenAI service in 2021. In a recent tweet, OpenAI CEO Sam Altman praised Azure’s AI-related services.

Relation:Bitcoin mining difficulty drops sharply, speculative buying of AI (artificial intelligence) stocks due to ChatGPT epidemic

The power of ChatGPT

On November 30, 2010, the interactive AI language model “ChatGPT” was released and made available for free testing. ChatGPT is designed so that users can get answers to their questions as if they were talking to humans, and it is expected to be used for report creation, software code design, etc. ChatGPT has been attracting attention as it surpassed 1 million users in less than a week after its release.

In addition, speculative buying of AI (artificial intelligence)-related crypto asset (virtual currency) tokens gathered due to the influence of “ChatGPT” becoming popular on Twitter. According to CoinGecko data, FetchAI (FET) and DeepBrain (DBC) have risen by more than 50% over the past month (as of January 10).

On January 3, the overseas media The Information reported that OpenAI technology may be integrated into Microsoft’s search engine “Bing” by the end of March. There are also plans to incorporate ChartGPT into Microsoft’s office software (Outlook, Word, Outlook, PowerPoint, etc.). Even if users can’t remember the exact keyword, they can pick up the email they’re looking for by asking fragmented questions.

With the adoption of ChatGPT, many people predict that the search engine market, in which Google accounts for more than 90%, will enter a period of change. In December, Google’s CEO Sundar Pichai set up a working group to combat the ChatGPT threat, according to reports. Google’s search ads account for 58% of parent company Alphabet’s revenue, with ad revenue accounting for about 81% of the total.

Relation:2.8 billion yen investment in Microsoft, Polygon, and Web3 data-related companies

The post Microsoft invests 1.3 trillion yen in OpenAI, which develops “ChatGPT” appeared first on Our Bitcoin News.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.