Microsoft Confirms ‘Multibillion-Dollar’ Investment in OpenAI

Improve the News Foundation -

Facts

  • On Monday, Microsoft announced a multiyear, multibillion-dollar investment in ChatGPT-maker OpenAI.
  • While Microsoft did not disclose the terms, media reports claim the software giant has infused as much as $10B into OpenAI. The intention is to "responsibly advance cutting-edge AI research and democratize AI as a new technology platform" per Satya Nadella, Microsoft chair and CEO.
  • Microsoft, which invested $1B into OpenAI in 2019, is expected to get 75% of OpenAI's profits until it recoups its investment.
  • In a blog post, Microsoft said the investment would include additional supercomputer development and cloud-computing support for OpenAI via Microsoft's Azure cloud-computing platform.
  • At the same time, the investment could allow Microsoft to incorporate OpenAI tools like ChatGPT and image generator Dall-E into its flagship applications, such as Word, PowerPoint, and Outlook.
  • The announcement comes just one week after Microsoft announced it would be laying off 10K employees throughout 2023 as part of broader cost-cutting measures.

Sources: Microsoft, Bloomberg, Vox, Guardian, CNN, and CNBC.

Narratives

  • Establishment-critical narrative, as provided by Forbes. Tech giants seeking to cash in on the AI gold rush is a worrying trend. Microsoft's multibillion-dollar investment signals that users are at a disadvantage if they're not using AI. While ChatGPT certainly acts as a powerful demonstration of what AI can do today, if artificial intelligence begins doing the creative jobs of human beings, it could render millions of jobs useless.
  • Pro-establishment narrative, as provided by Schneider Electric. AI tools will boost human productivity, increasing economic growth and the wages for minimum-wage jobs. Many software developers and companies leverage AI-based technologies to boost employee productivity, unlock efficiencies, and increase job satisfaction. Instead of betting against AI technology in fear that it will steal their jobs, businesses and employees must embrace the technology to ensure they remain effective and competitive in their respective fields.