Microsoft plans to invest $10 billion in ChatGPT’s owner

microsoft corp is in talks of investing up to $10 billion in OpenAI, creators of viral artificial intelligence bot ChatGPT, according to people familiar with its plans.

The proposal under consideration would see the Redmond, Wash.-based software giant investing the money over several years, though final terms could change, people said, asking not to be named if it’s a private matter goes. The two companies had been discussing the deal for months, they added.

Semafor previously reported that the potential investment would involve other venture firms and could value OpenAI at around $29 billion, citing people familiar with the talks. Documents sent to investors were targeting a deal by the end of 2022, she added.

Microsoft and OpenAI representatives declined to comment.

ChatGPT has been lighting up the internet since launching in late November, racking up its first million users in less than a week. Its mimicking of human conversation sparked speculation about its potential to oust professional writers and even threaten Google’s core search business. The organization behind it, co-founded by Elon Musk and Silicon Valley investor Sam Altman, makes money by hiring developers to license their technology.

The new technology is based on OpenAI’s GPT-3 language model and comes at the end of a year of headline-grabbing advances in AI. The company’s Dall-E image generation model – which accepts written requests for the synthesis of art and other images – also sparked widespread debate about AI’s inroads into the creative industries. OpenAI is already working on a GPT 4 successor model for its natural language processing.

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Microsoft previously invested about $1 billion in OpenAI. It’s also working to add ChatGPT to its Bing search engine to gain an edge over Alphabet Inc.’s dominant search offering. The bot is able to respond to queries, engage in conversation, and answer follow-up questions in a natural and human way, unlike the basic links that a Google search provides.

Still, concerns about its accuracy — which Altman himself says isn’t good enough to rely on the bot — have prompted caution about its premature use, and New York schools have banned their students from accessing ChatGPT.

This story was published from a wire agency feed with no changes to the text. Only the headline has been changed.

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