Jan 23 (Reuters) – Microsoft Corp ( MSFT.O ) said on Monday it would invest more in OpenAI, signaling its future in the start-up and technology behind chatbot sentiment and setting the stage for more competition with rival Alphabet. Inc’s (GOOGL.O) Google
With the recent artificial intelligence (AI) revolution underway, Microsoft is building on the bet it made four years ago on OpenAI. In the year In 2019, it committed $1 billion to the startup, founded by Elon Musk and investor Sam Altman, and has since built a supercomputer to power OpenAI technology and other forms of support.
“To ensure these benefits are widely shared with the world, we’re announcing the third phase of our long-term partnership with OpenAI, a multi-year, billion-dollar investment to accelerate AI breakthroughs,” Microsoft said in a blog post.
A Microsoft spokeswoman declined to comment on the terms of the investment, which some media previously reported was $10 billion.
Microsoft is putting more resources into keeping the two companies at the forefront with a technology called generative AI that can learn from a wealth of data to learn how to create any type of content simply from a text prompt. OpenAI’s ChatGPT, which produces prose or poetry on demand, is a prime example that gained widespread attention in Silicon Valley last year.
As OpenAI continues to create human-like intelligence for machines, Microsoft said last week that it aims to embed such AI in all of its products. Microsoft is adding OpenAI’s technology to Bing, the search engine that is being talked about as a rival to industry leader Google for the first time in years.
The widely expected investment shows how Microsoft is locked in competition with Google, a key AI research inventor and now plans to unveil its own this spring, according to a person familiar with the matter.
Reporting by Jeffrey Dustin in Palo Alto, California; Additional reporting by Eva Mathews in Bengaluru; Edited by Kirsten Donovan
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