Sage Investment Club

This comes with rights to use their technology on MSFT productsWhen a chatbot called ChatGPT hit the internet late last year, executives at a number of Silicon Valley companies worried they were suddenly dealing with new artificial intelligence technology that could disrupt their businesses.But at Microsoft, it was a cause for celebration. For several years, Satya Nadella, Microsoft’s chief executive, had been putting the pieces in place for this moment.In 2019, Microsoft invested $1 billion in OpenAI, the tiny San Francisco company that designed ChatGPT. And in the years since, it has quietly invested another $2 billion, according to two people familiar with the investment who requested anonymity because they were not authorized to speak with the media.The $3 billion paid for the huge amounts of computing power that OpenAI needed to build the chatbot. And it meant that Microsoft could rapidly build and deploy new products based on the technology.It has already been a home run partly because Satya was prescient enough to make the bet three years ago, and because all applications will be generative in the future,” said Matt McIlwain, a managing partner at Seattle’s Madrona Venture Group.MSFT technology:A year later, Microsoft invested $1 billion in the company and committed to building the supercomputer technologies OpenAI’s enormous models would demand while becoming its “preferred partner for commercializing” its technologies. OpenAI later officially licensed its technologies to Microsoft, allowing the company to directly add them to Microsoft products and services.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *