Just a few days after Microsoft layoffs caused havoc, the tech giant is on its way to make another big investment. As per reports, Microsoft Corp. will be making a $10 billion worth investment in OpenAI, the research lab behind the famous ChatGPT and DALL-E.
According to a report in Bloomberg, Microsoft will make this investment in ChatGPT’s OpenAI over several years. However, it also clarified that the investment amount is as per a person familiar with the discussions as Microsoft, officially, didn’t disclose the value of its investment.
The report adds that ChatGPT’s Open AI, referring to Microsoft’s investment, said in a statement, “This will allow us to continue our independent research and develop AI that is increasingly safe, useful and powerful.”
The news of Microsoft investing in OpenAI over a few years comes just a few days after the company laid off as many as 10,000 employees. Even Microsoft CEO Satya Nadella confirmed the mass layoffs but also clarified that the company would keep hiring in strategic areas.
As per the report, Microsoft also plowed $1 billion into OpenAI in 2019 while seeking an edge on some of the most popular and advanced AI systems. These systems also compete with Alphabet Inc., Amazon.com Inc., and Meta Platforms Inc. It adds that OpenAI also needs the funding from Microsoft and its cloud computing in order to crunch massive volumes of data.
Ever since its launch, ChatGPT has become the buzzword as the AI-based software also reportedly gathered close to a million users in less than a week.