Microsoft Corp is in talks to give OpenAI, The Company that owns and runs ChatGPT, a $10 billion investment. Semafor Claimed on Monday that this would increase the company’s valuation to $29 billion, citing knowledgeable sources in the sector.
The report claims that more venture firms contributed to the cash. In order to close the financing by 2022, Deal documents were recently distributed to prospective investors.
Microsoft Declined to Comment, and OpenAI also did not answer right away.
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This is in response to a Wall Street Journal report that said venture capital firms like Thrive Capital or Founders Fund would buy shares from current shareholders if OpenAI decided to sell its existing shares at a price of about $29 billion.
Sam Altman an investor, and Elon Musk, the CEO of Tesla, launched OpenAI. On November 30, the ChatGPT chatbot was made Accessible for testing by the general public without payment. Standard chatbots are computer programs created to mimic human-like discussions with user prompts, but ChatGPT is capable of much more.
Semafor asserted that Microsoft was entitled to receive 75% of OpenAI’s earnings. After figuring out how to profit from ChatGPT and other goods like Dall-image E’s production tool, OpenAI will then recover its initial investment.
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If OpenAI achieves that point, Microsoft would retain a 49% stake in the company. The remaining 49% would go to other investors, and 2% would go to OpenAI’s nonprofit parent, the article said. The story did not specify what would be at stake until Microsoft received its money.
In 2019, Microsoft made a $1 billion investment in OpenAI and was Developing a new version of its search engine Bing that used ChatGPT’s AI.
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