The tech behemoth is prepared to spend more than $10 billion on the purchase.
The proprietor of ChatGPT anticipates a $1 billion profit by 2024.
Presently, ChatGPT is one of the most talked-about things on the web. The AI programme is being used to provide feedback, draft reports, and create new software. Currently, Semafor claims that Microsoft is in talks to acquire OpenAI, ChatGPT’s parent business. The tech behemoth is prepared to spend more than $10 billion on the purchase.
The clause reportedly included in Microsoft’s investment is unusual. Until OpenAI recoups its original funding, the nonprofit would get 75% of the company’s profits.
Further, a setup with OpenAI ownership would be made. With Microsoft’s inclusion, the software giant would own a 49 percent share, with the remaining fraction split among several investors. Apparently, the remaining 2% will be donated to OpenAI’s parent organization.
Banking on Artificial Intelligence
The artificial intelligence company is in the process of seeking capital at a value of $29 billion. The company is allowing early investors and workers to liquidate their shares at the aforementioned price. In its first year, OpenAI launched as a nonprofit with the mission of facilitating the secure widespread use of artificial intelligence.
However, it retooled its business strategy and in 2019 emerged as a novel “capped profit” enterprise. Microsoft poured $1 billion into the company at the time, split between cash and cloud credit investments.
The proprietor of ChatGPT anticipates a $1 billion profit by 2024. Because of Google’s interest in the AI ecosystem, Microsoft’s most recent alliance may prove to be a boon for the company. As a result, Microsoft may be able to reach new heights due to the growing demand for AI-based solutions.