Microsoft is allegedly in talks with ChatGPT-owner OpenAI, in efforts to invest $10 billion as part of funding that will value the firm at $29 billion (Ksh.3.6 trillion).
As reported by Semafor on Monday, the funding could also include other venture firms and documents sent to prospective investors outlining its terms indicated a targeted close by the end of 2022.
The AI’s chatbot can spit out haikus, debug code and answer questions while imitating human speech.
Both Microsoft and OpenAI are yet to comment on the same.
The software giant had in 2019 invested $1 billion in OpenAI, founded by Elon Musk and Sam Altman. Microsoft’s cloud services arm also provides the computing power needed by the AI firm.
According to Semafor, Microsoft will also get 75% of OpenAI’s profits until it recoups its initial investment.
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After hitting that threshold, Microsoft would have a 49% stake in OpenAI, with other investors taking another 49% and OpenAI’s nonprofit parent getting 2%, Semafor said.
Microsoft will reportedly integrate image-generation software from ChatGPT into its search engine Bing just like it last year unveiled plans to do the same with OpenAI.
OpenAI charges developers licensing its technology about a penny or a little more to generate 20,000 words of text, and about 2 cents to create an image from a written prompt.
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