According to comprehensive foreign media reports, Microsoft intends to invest $10 billion in ChatGPT developer OpenAI, which will make OpenAI’s valuation reach $29 billion.
The funds, which reportedly include other venture capital firms, have sent deal documents to potential investors in recent weeks, aiming to close the round by the end of 2022.
Microsoft declined to comment, while OpenAI did not immediately respond to requests for comment.
According to the Wall Street Journal, OpenAI is in talks to sell its existing stake at a valuation of about $29 billion, with venture capital firms like Thrive Capital and Founders Fund buying shares from existing shareholders.
OpenAI was founded by Tesla CEO Elon Musk and investor Sam Altman. OpenAI launched the AI chatbot “ChatGPT” on November 30 and provided free testing for the public.
According to foreign media Semafor, according to the agreement, Microsoft can get 75% of OpenAI’s profits when it recovers its initial investment.
That’s when OpenAI figured out how to make money on ChatGPT and other products like Dall-E.
Once the threshold is reached, Microsoft will own 49 percent of OpenAI, other investors will get another 49 percent, and OpenAI’s non-profit parent company will get 2 percent.
The Information also reported last week that Microsoft, which invested $1 billion in OpenAI in 2019, is working to use the AI behind ChatGPT to launch a version of its search engine Bing.