Microsoft Said to Invest $10 Billion Into OpenAI, Other Venture Firms

Microsoft Corp is in talks to invest $10 billion (roughly Rs. 82,200 crore) into OpenAI, the owner of ChatGPT, which will value the San Francisco-based firm at $29 billion (roughly Rs. 2,38,400 crore), Semafor reported on Monday, citing people familiar with the matter.

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The funding includes other venture firms and deal documents were sent to prospective investors in recent weeks, with the aim to close the round by the end of 2022, the report said.

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Microsoft declined to comment, while OpenAI did not immediately respond to Reuters' request for comment.

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This follows a Wall Street Journal report that said OpenAI was in talks to sell existing shares at a roughly $29 billion valuation, with venture capital firms such as Thrive Capital and Founders Fund buying shares from existing shareholders.

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OpenAI, founded by Tesla CEO Elon Musk and investor Sam Altman, made the ChatGPT chatbot available for free public testing on November 30. A chatbot is a software application designed to mimic human-like conversation based on user prompts.

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The Semafor report said the funding terms included Microsoft getting 75 percent of OpenAI's profits until it recoups its initial investment once OpenAI figures out how to make money on ChatGPT and other products like image creation tool Dall-E.

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Microsoft Said to Invest $10 Billion Into OpenAI, Other Venture Firms

The deal documents were reportedly sent to prospective investors in recent weeks, with the aim to close the round by the end of 2022.

Brought to you by Trickyenough

Microsoft Corp is in talks to invest $10 billion (roughly Rs. 82,200 crore) into OpenAI, the owner of ChatGPT, which will value the San Francisco-based firm at $29 billion (roughly Rs. 2,38,400 crore), Semafor reported on Monday, citing people familiar with the matter.

Brought to you by Trickyenough

The funding includes other venture firms and deal documents were sent to prospective investors in recent weeks, with the aim to close the round by the end of 2022, the report said.

Brought to you by Trickyenough

Microsoft declined to comment, while OpenAI did not immediately respond to Reuters' request for comment.

Brought to you by Trickyenough

This follows a Wall Street Journal report that said OpenAI was in talks to sell existing shares at a roughly $29 billion valuation, with venture capital firms such as Thrive Capital and Founders Fund buying shares from existing shareholders.

Brought to you by Trickyenough

OpenAI, founded by Tesla CEO Elon Musk and investor Sam Altman, made the ChatGPT chatbot available for free public testing on November 30. A chatbot is a software application designed to mimic human-like conversation based on user prompts.

Brought to you by Trickyenough

The Semafor report said the funding terms included Microsoft getting 75 percent of OpenAI's profits until it recoups its initial investment once OpenAI figures out how to make money on ChatGPT and other products like image creation tool Dall-E.

Brought to you by Trickyenough