Microsoft Considers $10 Billion Investment in ChatGPT Creator

One million users in less than a week

Microsoft Corp. is in discussions to invest as much as $10 billion in OpenAI, the creator of viral artificial intelligence bot ChatGPT, according to people familiar with its plans. The proposal under consideration calls for the Redmond, Washington-based software giant to put the money in over multiple years, though the final terms may change, the people said, asking not to be named discussing a private matter. The two companies have been discussing the deal for months, they added.

The potential investment would involve other venture firms and could value OpenAI at about $29 billion, citing people familiar with the talks. Documents sent to investors had targeted end-2022 for a deal closing, it added.
ChatGPT has lit up the internet since launching at the end of November, gathering its first million users in less than a week. Its imitation of human conversation sparked speculation about its potential to supplant professional writers and even threaten Google’s core search business. The organization behind it, co-founded by Elon Musk and Silicon Valley investor Sam Altman, makes money by charging developers to license its technology.

https://www.bloomberg.com/

Microsoft’s investment in the developer of ChatGPT may be the smartest $1 billion investment ever made

If ChatGPT realizes its potential, Microsoft may have future-proofed its cloud and browser business forever  

For the past few months, it has looked like Big Tech’s bull run is coming to an end. As interest rates soar, even well-funded tech companies are retreating from risky, expensive moonshots or money-losing projects. But a speculative bet is increasingly looking like excellent value for money: OpenAI just  released AI bot ChatGPT and is in talks to raise $30 billion in capital.

In 2019, Microsoft invested $1 billion in buoyant artificial intelligence research firm OpenAI, co-founded by Y Combinator’s Sam Altman, Elon Musk, and a group of others just over seven years ago. Financial details of the deal weren’t disclosed at the time, but MIT Tech Review reported in 2020 that the $1 billion was split between cash and credit for Azure, Microsoft’s cloud business. In November, OpenAI released an easy-to-use bot, ChatGPT, based on its GPT 3.5 language model trained on Azure. Engineers, academics, entrepreneurs, non-techies, and investors were nearly universal in their hype and praise as ChatGPT proved (up to a point) to be frighteningly intelligent. Even when buggy, ChatGPT is so smart that Google considers the chatbot “Code Red” for its search business.

Now, OpenAI is reportedly in talks to raise more capital at a valuation of nearly $30 billion – up from a current valuation of $20 billion – and is reportedly in talks with the VC led by Peter Thiel -Company Founders Fund. The valuation would be cemented by a takeover bid with the sale of existing shares to investors. The Information reported that the company could integrate ChatGPT with Bing, its struggling Google competitor. The first real threat to Google’s search hegemony in two decades.

https://canadatoday.news/

Why tech insiders are so excited about ChatGPT?

The chatbot  answers questions and writes essays 

For his day job, Tobias Zwingmann is the managing partner of RAPYD.AI, a German consulting firm that helps clients make use of artificial intelligence. On the side, Zwingmann teaches online courses on AI. Lately, Zwingmann has been generating lecture notes using ChatGPT, a new chatbot that’s quickly become the latest fad in tech. Zwingmann said he recently asked ChatGPT to explain the mechanisms and workings of a machine learning technology known as a DBSCAN, which is short for density-based spatial clustering of applications with noise, because he is too “lazy to write it all down.” “I went up and said, ‘OK, tell me a detailed step by step of how the DBSCAN algorithm works,’ and it gave me that step by step,” Zwingmann said.

After a little bit of polishing and editing, Zwingmann said the lecture notes were in good shape. “This took me like 30 minutes, and before that I would have spent the whole day,” Zwingmann said. “I can’t neglect that this has proven to be hugely beneficial.”

ChatGPT debuted in late November and has quickly turned into a viral sensation, with people tweeting questions, such as “Are NFTs dead,” and requests like, “Tell a funny joke about the tax risks of international remote work.” They include a screenshot of ChatGPT’s response, which often — but not always — makes sense.

The technology was developed by San Francisco-based OpenAI, a research company led by Sam Altman and backed by Microsoft, LinkedIn co-founder Reid Hoffman and Khosla Ventures. ChatGPT automatically generates text based on written prompts in a fashion that’s much more advanced and creative than the chatbots of Silicon Valley’s past.

https://www.cnbc.com/