Microsoft designing a 10 billion investment in Chat GPT's parent company OpenAI. The discussions have been reported by the news agency Writers, quoting a Semaphore report. As per Semaphore, the valuation of San Francisco based OpenAI will rise to $29 billion if the deal gets through.
The Semaphore report says that the funding conditions stated that Microsoft would get 75% of the parent company's income until a point where Open AI earns back its initial investment from the AI generator.
Once the milestone is reached, Microsoft will get 49% of the total share in the company. The report, however, says that the stakes will not be known until Microsoft receives its money back. The news of Microsoft discussing investments comes after similar such investments by venture firms.
Writers reports that deal documents have been circulated to potential investors in the last few weeks, with the company aiming to close the funding round by the end of this year. Tesla CEO Elon Musk launched chat GPT on the 30 November last year along with investor Sam Altman.
The chatbot since then has sparked quite a strong for internet users. Chat GPT is a software created to replicate humanlike dialogue in response to user input. Several media reports quoting unlisted opinions are speculating whether the AI chatbot will challenge Google's Hegemony some days later.
