Microsoft in talks to invest $10 billion in OpenAI

Microsoft in talks to invest  billion in OpenAI

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According to a new report from Semafor, Microsoft is currently in negotiations to invest around $10 billion in OpenAI, the company behind the wildly popular typing app ChatGPT. Semafor reports that the funding round is likely to include other companies, and could value OpenAI at around $29 billion. It is unclear whether the terms are final or not.

OpenAI was founded back in 2015 by a collective led by former Y Combinator president Sam Altman and Elon Musk, with the stated goal of developing “friendly” artificial intelligence technology that would benefit humanity as a whole. The project reflected Musk’s ongoing personal concerns about AI development, which he has previously warned could have “scary outcomes.” (He’s even cited the iconic James Cameron movie “The Terminator” as a worst-case scenario, which actually sounds VERY unfortunate.) Still, the Tesla and SpaceX founder stepped down from the company’s board in 2018; Altman continues to serve as CEO.

Microsoft invested $1 billion in both cash and cloud credits into OpenAI back in 2019, kicking off the two companies’ “exclusive computing partnership.” At the time, their emphasis was on developing artificially intelligent “supercomputing technologies” to accompany Microsoft’s Azure cloud platform. The Information first reported that Microsoft was considering an expanded investment last October.

Under the terms of this new deal, Microsoft ends up with a combined 49% stake in OpenAI; they will receive 75% of the company’s profits until their original investment is recouped. In a relatively unusual move for a venture deal of this size, all investors will also apparently have a profit cap. Both Microsoft and OpenAI have so far refused to comment.

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The benefits of Microsoft and OpenAI’s collaboration are quite clear for both parties. Microsoft gets to play a visible and public rule in the development of the next generation of artificial intelligence technology, while OpenAI secures new funding, a huge and popular testing ground for their latest apps and innovations, and an association with one of the biggest and most established brands. names in technology. Since OpenAI requires such deep investments in computing power, it also makes sense to align with Microsoft, which owns and operates a massive cloud-based computing platform. (According to CEO Sam Altman, OpenGPT currently lose a few pennies on each new message.)

The agreement also keeps OpenAI’s technology out of the hands of Microsoft competitors. According to Fortune, the company may soon add ChatGPT to its Bing search engine, giving it a potential competitive advantage over Alphabet’s industry-dominating Google platform. Bing can theoretically answer searches in natural language, even asking follow-up questions to potentially provide better and more accurate results than Google’s default algorithms.

OpenAI’s ChatGPT text generator – a chatbot that uses machine learning to compose clear, smooth prose based on suggested prompts – went viral on social media after its release in December 2022, largely due to its uncanny ability to simulate a human writer and produce compelling text in the long run. -ute, “random” or wacky subjects. (For example, this short essay about removing a peanut butter sandwich from a VCR, composed in the style of a Bible verse.)

The app has already become so popular that public schools in New York City have had to block access to it, fearing that students might start relying on it for schoolwork. Still, it works better in some scenarios than others. Gizmodo found that the app has had some success composing academic articles that can fool scientific reviewers, and several companies have already started using the technology for customer service systems. Even some professors see potential “exciting opportunities” in the technology. Nevertheless, the app has not proven to be a very successful blogger, is particularly dishonest in nature and shows a questionable level of bias around certain topics.

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While ChatGPT may be the internet’s current obsession, it’s not even the first OpenAI project to capture the world’s attention. The organization is also behind DALL-E, the deep learning software that generates digital images from written messages.. Although Twitter immediately began using the software to generate goofy, shareable memes, it could potentially drive far-reaching and profoundly significant new innovations. Biological researchers have begun working with DALL-E-type systems to generate blueprints for new proteins, which could help improve the human body’s ability to fight disease or perform other previously “impossible” tasks.

OpenAI also has a number of other projects underway. In December, they introduced POINT-E, which produces 3D “point cloud” images, also based on natural language prompts. Unlike larger and more complex AI art software, Point-E requires minimal processing power and only a few minutes to produce its simple images.

OpenAI is currently headquartered in San Francisco, but there is reason to believe that Los Angeles could soon benefit from the partnership between the companies; Microsoft, based in Washington, has a large outpost in Santa Monica (as seen here on Mapquest), and the recent Activision merger should keep them bound in LA for the foreseeable future.

And the city has increasingly become a hub for AI interests: Glendale-based Disney Research Studios recently unveiled new AI deaging technology, the LA Chargers recently partnered with AI platform MeetKai for interactive fan experiences and, of course, the M3GAN sightings. Can’t forget M3GAN. – Lon Harris

What we read…

– YouTube’s new revenue sharing agreement with Shorts creators will be launched on 1 February.

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– Meta introduced new, stricter rules for serving ads based on personalized data from teenage users.

– Startup DoNotPay’s AI-enabled “robo-lawyer” will make its first actual courtroom appearances in two traffic court cases next month. No word yet on whether it will go head to head with San Francisco’s killer robot police unit.

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