Engineering 101

Microsoft Multibillion Investment in OpenAI

Microsoft Corp just announced a multibillion-dollar investment in OpenAI, based on the AI ChatGPT tool taking Alphabet Inc’s Google head-on. Microsoft first invested $1 billion four years ago when Elon Musk and investor Sam Altman created the startup.

In a recent blog, it announced a multiyear, multibillion-dollar investment that includes supercomputer and cloud-computing support for OpenAI, with both companies able to commercialize the resulting AI technology.

OpenAI has been furthering its foray into creating content via text prompts. OpenAI’s tech is finding its way into the Bing search engine, elevating it to a contender to Google. ChatGPT will be used in Microsoft’s cloud computing services and may also find its way into Microsoft’s suite of applications.

Just a few days ago, Microsoft announced it would lay off 10,000 employees to cut costs. It also indicated it would slate its dollars towards such strategic technologies as AI. The investment into OpenAI seems like a game-changer for both companies.

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