Microsoft Said It Would Invest an Additional Billion Dollars in OpenAI as the Competition Intensifies

By Charu On Jan 24, 2023

Microsoft Corp. on Monday disclosed a new multibillion-dollar investment in OpenAI, strengthening connections with the startup that created the ChatGPT chatbot phenomenon and paving the way for more competition with competitor Google, a subsidiary of Alphabet Inc.

Microsoft recently proclaimed an AI revolution, following on a wager it placed on OpenAI nearly four years prior when it committed $1 billion (about Rs. 8,200 crores) for the business co-founded by investors Sam Altman and Elon Musk.

Since then, among other sorts of assistance, it has constructed a supercomputer to power OpenAI’s technologies. The third phase of their collaboration, which will involve more supercomputer development and support for OpenAI in cloud computing, has recently been revealed by Microsoft in a blog post.

The blog post claimed that both businesses will be able to commercialize the resulting AI technology. A Microsoft representative declined to comment on the details of the most recent investment, which was earlier reported by several media outlets to be $10 billion (roughly Rs. 82,000 crores).

Microsoft is investing even more resources in generative AI, a system that can learn from data how to produce almost any form of content simply from a text prompt, in order to maintain the two businesses at the forefront of artificial intelligence.

The standout example that garnered considerable attention in Silicon Valley last year was OpenAI’s ChatGPT, which generates prose or poetry on demand. As OpenAI continues its quest to develop artificial intelligence that is comparable to human intelligence, Microsoft stated last week that it wants to include such AI in all of its products.

Since it hasn’t been discussed in years as a potential competitor to Google, the market leader, Microsoft has begun integrating OpenAI’s technology into its Bing search engine.

The much-awaited investment demonstrates how Google, the pioneer of important AI research that is planning its own unveiling for this spring, is locked in battle with Microsoft, a source familiar with the situation previously told Reuters.

Days after Alphabet and Microsoft each announced layoffs of 10,000 or more employees, Microsoft placed their wager. Based in Redmond, Washington In its layoff announcement, Microsoft forewarned of an impending recession and increasing customer scrutiny of their digital spending.