Microsoft in talks to invest $10 bln in ChatGPT owner -Semafor

Date:

Share post:


Jan 9 (Reuters) – Microsoft Corp (MSFT.O) is in talks to invest $10 billion into OpenAI, the owner of ChatGPT, which will value the San Francisco-based firm at $29 billion, Semafor reported on Monday, citing people familiar with the matter.

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, the report said.

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 (TSLA.O) CEO Elon Musk and investor Sam Altman, made the ChatGPT chatbot available for free public testing on Nov. 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.

Reporting by Aarati Krishna in Bengaluru; Editing by Savio D’Souza

Our Standards: The Thomson Reuters Trust Principles.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Englander Davis is Gearing Up To Continue Their Growth Throughout Australia

PRESS RELEASEPublished January 30, 2023One of Australia’s leading digital marketing firms, is ready to expand its reach...

9 customer retention strategies – tips for small businesses

7. Use analytics and automationAs a small business owner, freelancer or sole-trader, you already have a lot...

SURVIVAL TIPS FOR THE 59 MILLION US FREELANCERS IN 2023

PRESS RELEASEPublished January 30, 2023 America’s 59 million freelancers need to buckle up and assume the ‘brace’ position;...

$250 Main Event ($500,000 GTD) | 2023 888poker XL Winter Series

Players have been duking it out for a couple of weeks trying to earn Day 2 seats...