• January, 14 2023
  • by Ascentspark Software

Microsoft Corporation has been in talks to invest $10 billion into OpenAI, the owner of ChatGPT, as reported by Semafor. The funding might include other venture firms and is said to value the San Francisco-based OpenAI at $29 billion, reportedly.

Before we move forward, let’s understand what ChatGPT is.

  • OpenAI introduced a long-form Q/A AI called ChatGPT that answers complex questions in a conversational manner   
  • It’s said to be a revolutionary technology because it has been designed to learn what humans exactly mean when they ask a certain question
  • ChatGPT is an extensive language model chatbot developed and developed by OpenAI based on the GPT-3.5
  • Reinforcement Learning integrated with Human Feedback (RLHF) is an additional layer of the training that utilizes human feedback to help ChatGPT understand the ability to follow directions along with generating responses that are emotionally satisfactory to humans

What’s already interesting is that Microsoft is a partner and investor with an amount of $1 billion dollars as they had jointly developed the Azure AI Platform.

Going back to the investment that Microsoft Corp. is likely to make in OpenAI, the funding further includes investment that amounts to Microsoft receiving 75 per cent of OpenAI's profits until it recoups the prior investment. This is expected to take place once OpenAI plans how to make money out of ChatGPT and different other products such as image creation tools like  Dall-E, as reported by Semafor.

Microsoft is reported to acquire a 49 per cent stake in OpenAI along with other investors taking another 49 per cent and OpenAI's non-profit parent is said to receive 2 per cent, as reported.

What more?

According to THe Wall Street Journal, OpenAI is said to be in talks to sell its shares in a tender offer valuing around $29 billion.

As per reports, ChatGPT had more than 1 million users within days after it was launched in December.


The AI technology used in ChatGPT allows it to instantly answer questions in response to requests and thus, create poems, essays, and also does coding.

This, in turn, has raised plagiarism concerns among schools in New York which have already taken steps to ban it.

Further Steps

OpenAI has reportedly said that they are working on ways to identify text generated by the bot.

The company said, “We don’t want ChatGPT to be used for misleading purposes in schools or anywhere else, so we’re already developing mitigations to help anyone identify text generated by that system.”

As per The National, Microsoft has not responded to a request for comment on the investment.

Will ChatGPT be a boon or be banned?

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