Microsoft invests billions into OpenAI

Published January 23rd, 2023 - 07:17 GMT
Microsoft OpenAI investment
Shutterstock image


ALBAWABA — Microsoft on Monday said it plans to expand its existing partnership with OpenAI — the research lab and creator of ChatGPT, an artificial intelligence chatbot — as part of its desire to add more artificial intelligence to its suite of products.


Specific financial terms of the deal were not shared, but media reports have put Microsoft's fresh investment in California-based OpenAI at $10 billion, which would value the company at roughly $29 billion.


“We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” Satya Nadella, Microsoft’s CEO, wrote in a statement.


“In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications,” he added.


In a company blog post tweeted by Nadella, the tech giant announced a "multiyear, multibillion dollar investment to accelerate AI breakthroughs" that would be "broadly shared with the world".


On Jan. 18, Microsoft announced plans to cut 10,000 jobs as part of broader cost-cutting measures, Nadella at the time saying that the company would continue to invest in “strategic areas for our future” and pointed to advances in AI as “the next major wave” of computing.


OpenAI’s CEO Sam Altman said: “The past three years of our partnership have been great. Microsoft shares our values and we are excited to continue our independent research and work toward creating advanced AI that benefits everyone.”

OpenAI, also the creator of DALL-E, a program that can swiftly draw up digital images and illustrations at a simple request, wrote the multi-year investment will be used to “develop AI that is increasingly safe, useful, and powerful”, in a blog post.


OpenAI's ChatGPT became an Internet sensation when it was released in November, allowing users to experiment with its ability to write essays, articles and poems in addition to computer code in mere seconds.


"With ChatGPT being one of the most innovative AI technologies seen in the industry, Microsoft is clearly being aggressive on this front and not going to be left behind on what could be a potential game changing AI investment," analyst Dan Ives of Wedbush Securities wrote in a note to clients.


“In the AI race today, Nadella & Co. are ahead of the rest of Big Tech and this investment is a major notch on the AI belt,” he added.



© 2000 - 2023 Al Bawaba (

You may also like