Microsoft plans to invest $10 billion in ChatGPT

Chat GPT, the latest language model tool, has been making waves since its release last month by OpenAI. The tool allows users to have conversations with a chatbot that can understand natural language and respond in a way that mimics human speech patterns. The app can answer questions, write poems, and even explain quantum physics, but experts say that a full AI takeover is not imminent.

The chatbot is powered by large amounts of data and complex algorithms that make predictions about how words should be strung together in a meaningful way. They not only tap into a vast vocabulary and information but also understand words in context. This helps them mimic speech patterns while dispatching encyclopedic knowledge.

According to sources familiar with the matter, Microsoft is in talks to invest $10 billion into OpenAI, the company behind the popular ChatGPT app. The funding round, which would also include other venture firms, would value OpenAI at $29 billion, including the new investment. The details of the deal are not clear, but it is reported that Microsoft would receive 75% of OpenAI’s profits until it recoups its investment. Once that threshold is reached, the ownership structure would change, with Microsoft holding a 49% stake, other investors holding 49%, and OpenAI’s nonprofit parent holding 2%. It is important to note that the deal is not final and could still fall through. Also the terms and investment amount may change.