Microsoft plans to infuse $10 billion into Open AI, the proprietor of a popular AI platform called Chat GPT, which will appreciate Open AI at about $29 billion. The news portal reported, citing people familiar with the matter, that it is still unclear if the deal has been finalized, but “documents sent to prospective investors in recent weeks outlining its terms indicated a targeted close by the end of 2022.”
Microsoft’s $10 billion investment will see it get 75 percent of Open AI’s profits “until it recoups its investment,” the report mentioned.
“After that threshold is reached, it would revert to a structure that reflects ownership of Open AI, with Microsoft having a 49 percent stake, other investors taking another 49 percent, and Open AI’s nonprofit parent getting 2 percent,” the report claimed.
The tech giant funded $1 billion in Open AI in 2019. Opened last month for the general public, Chat GPT has invited users to learn about its strengths and weaknesses. AI-driven Chat GPT gives human-like answers to questions and has become very popular on social media, with people asking it too.
Microsoft is now making Chat GPT applications for cracking real-life problems. The tech giant is reportedly adding Open AI writing tech to Office, delivering users a way to compose text for projects by incorporating AI technology into its apps.
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