Microsoft to invest more in OpenAI as tech race heats up

Microsoft to invest more in OpenAI as tech race heats up

Jan 23 (Reuters) – Microsoft Corp (MSFT.O) on Monday introduced an extra multibillion greenback funding in OpenAI, deepening ties with the startup behind the chatbot sensation ChatGPT and setting the stage for more competitors with rival Alphabet Inc’s (GOOGL.O) Google.

Recently touting a revolution in synthetic intelligence (AI), Microsoft is constructing on a wager it made on OpenAI almost 4 years in the past, when it devoted $1 billion for the startup co-founded by Elon Musk and investor Sam Altman.

It has since constructed a supercomputer to energy OpenAI’s expertise, amongst different types of help.

Microsoft in a weblog publish has now introduced “the third part” of its partnership “via a multiyear, multibillion greenback funding” together with further supercomputer growth and cloud-computing help for OpenAI.

Both corporations shall be in a position to commercialize the AI tech that outcomes, the weblog publish stated.

A Microsoft spokesperson declined to touch upon the phrases of the most recent funding, which some media retailers earlier reported could be $10 billion.

Microsoft is committing even more assets to preserve the 2 corporations on the forefront of synthetic intelligence by way of so-called generative AI, expertise that may be taught from knowledge how to create just about any sort of content material merely from a textual content immediate.

OpenAI’s ChatGPT, which produces prose or poetry on command, is the prime instance that final yr gained widespread consideration in Silicon Valley.

Microsoft final week stated it aimed to imbue such AI into all its merchandise, as OpenAI continues to pursue the creation of human-like intelligence for machines.

Microsoft has began including OpenAI’s tech to its search engine Bing, which for the primary time in years is being mentioned as a possible rival to Google, the trade chief.

The broadly anticipated funding exhibits how Microsoft is locked in competitors with Google, the inventor of key AI analysis that’s planning its personal unveil for this spring, an individual conversant in the matter beforehand advised Reuters.

Microsoft’s wager comes days after it and Alphabet every introduced layoffs of 10,000 or more staff. Redmond, Washington-based Microsoft warned of a recession and rising scrutiny of digital spend by prospects in its layoff announcement.

Reporting By Jeffrey Dastin in Palo Alto, California; Additional reporting by Eva Mathews in Bengaluru; Editing by Krishna Chandra Eluri, Kirsten Donovan and Jan Harvey

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