Microsoft is reportedly considering a $10 billion investment in OpenAI, the creator behind the viral ChatGPT chatbot, Bloomberg reported on Tuesday.
The talks have been ongoing for months, according to Bloomberg sources, and would entail the money being invested over multiple years.
Microsoft
MSFT,
+0.97%
already invested $1 billion in OpenAI in 2019 and is working to implement the AI software across its Bing search engine and Microsoft Design app.
The chatbot gives users intelligent responses to simple written requests, imitating human conversation. It can also synthesize art and images with prompts using the company’s Dall-E model.
A screenshot of one example of a conversation with a ChatGPT chatbot.
ChatGPT
The Wall Street Journal reported last week that OpenAI was in talks to sell existing shares to venture firms that would value the company at around $29 billion.
Founded by Sam Altman as a non-profit in 2015, OpenAI had initial backers such as Tesla and Twitter Chief Executive Elon Musk and LinkedIn co-founder Reid Hoffman. It has generated tens of millions of dollars in revenue from selling AI software to developers.
Since launching on Nov. 30, ChatGPT has gone viral, attracting one million users in under a week, Altman tweeted in December.
iframe.twitter-tweet
width: 100% !important;
Microsoft and OpenAI did not immediately respond to MarketWatch’s request for comment.
Microsoft stock was trading flat premarket at $227.28 on Tuesday. Over the last 52 weeks, the stock has dropped 28%.
