Microsoft and OpenAI are discussing a deal that would eventually garner $29 billion. The tech company plans to make a $10 billion investment in OpenAI. The deal would give Microsoft a 49% stake in the firm. The agreement also includes a clause that Microsoft would receive three-quarters of OpenAI’s profits until it recovers its investment. Microsoft previously invested $1 billion in the company in 2019.
So what is OpenAI?
OpenAI is responsible for creating the program ChatGPT. ChatGPT is an AI system that can converse and generate readable text on demand, among other things. The AI system was introduced to the public in November 2022 and has since surged in popularity. Microsoft is interested in the technology because it reportedly has plans to integrate the system into its Bing search engine. The plan has Google rushing to find something similar for its search engine. To understand the craze behind ChatGPT, click the link.
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