Microsoft plans to invest up to $10 billion in chatbot ChatGPT developers

Microsoft is reportedly in talks to invest $10 billion in OpenAI, the developer of the popular chatbot ChatGPT .

The financing targets also include other venture capital firms. Once the financing is completed, OpenAI's valuation will reach US$29 billion.

It’s unclear whether the deal has been finalized, but documents sent to potential investors in recent weeks mentioned a goal of completing it by the end of 2022. Developing technology with OpenAI on Microsoft’s cloud may be part of Microsoft’s vision.

Microsoft’s capital injection will be part of a complex deal that will see the company receive 75% of OpenAI’s profits until it recoups its investment, people familiar with the matter said. After reaching that threshold, it will revert to a structure that reflects OpenAI’s ownership, with Microsoft owning 49%, other investors getting another 49%, and OpenAI’s nonprofit parent getting 2%. There will also be a profit cap for each group of investors.

It is understood that OpenAI was founded by Tesla CEO Musk and investor Sam Altman. It launched the ChatGPT chatbot on November 30 last year and has launched a free public beta.

Unlike many chatbots on the market, this robot can write code, fix bugs, and help people write weekly work reports, papers, novels, etc.

On December 5 last year, OpenAI CEO Sam Altman posted on social media that ChatGPT had exceeded 1 million users five days after its launch.