Microsoft will increase its investment in OpenAI as the tech battle heats up
- ByStartupStory | January 24, 2023
Microsoft stated on Monday that it would boost its investment in OpenAI, basing its future on the company and its technology that gave rise to the ChatGPT chatbot craze and paved the door for greater Google-Google competition.
In a blog post, Microsoft said, “Today, we are announcing the third phase of our long-term partnership with OpenAI through a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world.”
Microsoft is capitalizing on a bet it made on OpenAI almost four years ago and recently hailed an AI revolution. Elon Musk and investor Sam Altman co-founded the firm in 2019, and it invested $1 billion in it. Since then, among other ways of support, it has developed a supercomputer to power OpenAI’s technology.
“We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” said Satya Nadella, Chairman and CEO, Microsoft. “In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications.”
“The past three years of our partnership have been great,” said Sam Altman, CEO of OpenAI. “Microsoft shares our values and we are excited to continue our independent research and work toward creating advanced AI that benefits everyone.”
Microsoft is investing even more resources to maintain the two businesses at the forefront by utilizing so-called generative AI, a technology that can learn from huge data how to create practically any form of content just from a text input. In Silicon Valley last year, OpenAI’s ChatGPT, which produces prose or poetry on demand, stood out as a noteworthy example.
Microsoft announced last week that it planned to include such AI into all of its products, as OpenAI continues its mission to develop artificial intelligence that is comparable to human intelligence. Bing, Microsoft’s search engine, which is being mentioned as a potential Google rival for the first time in years, already incorporates OpenAI technology.
The much anticipated investment shows how Google, the pioneer of significant AI research, is locked in battle with Microsoft. Google is already planning its own unveiling for this spring.
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