Microsoft announced a new multiyear, multibillion-dollar investment with ChatGPT-maker OpenAI. Microsoft Corp. will be making a $10 billion worth investment in OpenAI, the research lab behind the famous ChatGPT (Chat Generative Pre-trained Transformer) and DALL-E. The deal marks the third phase of the partnership between the two companies, following Microsoft’s previous investments in 2019 and 2021. Microsoft said the renewed partnership will accelerate breakthroughs in AI and help both companies commercialize advanced technologies in the future.
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OpenAI works closely with Microsoft’s cloud service Azure. In July 2019, Microsoft backed OpenAI with $1 billion, and the investment made Microsoft the “exclusive” provider of cloud computing services to OpenAI. Microsoft said that Azure will continue to serve as OpenAI’s exclusive provider.
Microsoft’s investment will also help the two companies engage in supercomputing at scale and create new AI-powered experiences.
ChatGPT automatically generates text based on written prompts in a fashion that’s much more advanced and creative than the chatbots of Silicon Valley’s past. The software debuted in late November and quickly turned into a viral sensation as tech executives and venture capitalists gushed about it on Twitter, even comparing it to Apple’s debut of the iPhone in 2007.
OpenAI is ranked by AI researchers as one of the top three AI labs worldwide, and the company has developed game-playing AI software that can beat humans at video games such as Dota 2. However, it’s arguably received more attention for its AI text generator GPT-3 and its quirky AI image generator Dall-E.
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