Microsoft may be planning to invest $10 billion in OpenAI, but there are conditions.


Microsoft is looking to invest $10 billion in OpenAI, the company behind ChatGPT. Semaphore has reported.. Microsoft wanted to raise money with other venture firms and issue documents to potential investors. The documents said that Microsoft was trying to finalize things by the end of 2022 so it could already decide what to do.

The OpenAI logo

The terms that Microsoft has come up with for funding are indeed very favorable for it. Apparently, Microsoft will get a whopping 75% of OpenAI’s profits until it gets back its original investment. Once Microsoft withdraws its initial investment, Semaphore says, “it will revert to a structure that reflects OpenAI’s ownership,” meaning Microsoft will own 49% of the shares and capital Cars will hold another 49% stake, excluding the nonprofit parent, OpenAI Inc. With only 2%.

There is nothing wrong with this project and it can completely collapse. It’s interesting that these details are coming to light, though, as Microsoft was reportedly trying to integrate ChatGPT into Bing to give it an edge over competitors like DuckDuckGo and Google. Neither Microsoft nor OpenAI have commented on the rumours.

If Microsoft goes ahead with this $10 billion investment in OpenAI, it won’t be the first time it has financially backed the company. In 2019, Microsoft injected $1 billion into the company to help build projects like ChatGPT.

Source: Semaphore


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