One of the hottest startups in Silicon Valley right now is OpenAI, the developer of Microsoft-backed ChatGPT, according to an RT report.
ChatGPT comes with a popular chatbot that can write a poem, a college essay, or even a line of program code.
Elon Musk was an early investor in OpenAI, and Microsoft is said to be in talks to raise the initial investment from $1 billion to $10 billion with the aim of challenging Google’s search engine that dominates the world.
If agreed, the injection of cash by the Windows maker would value OpenAI at a whopping $29 billion, making it a rare success in the tech world as Amazon, Meta and Twitter cut costs and lay off employees.
Analyst Dan Ives of Wedbush Securities said: “Microsoft is clearly being tough on this front and will not be left behind on what could be a potentially game-changing AI investment.
Prior to the release of ChatGPT, OpenAI amazed tech experts with Dall-E 2, a program that creates digital images with simple instructions.
Microsoft, which makes no secret of its ambitions in the field of artificial intelligence, has integrated Dall-E 2 into many of its applications and now, according to a report in Bloomberg, the tech giant wants to graft ChatGPT into its Bing search engine to challenge Google.
Since ChatGPT was introduced in November, the chatbot’s ingenuity has piqued the curiosity and fascination of netizens. It is able to formulate detailed, human-like answers to a wide range of topics in a matter of seconds, raising concerns that it will be vulnerable to abuse by cheaters at school or mislead.
Artificial intelligence specialist Rob Wilson, founder of software company OneReach.ai, said the incredible success was partly due to OpenAI’s clever marketing strategy, which made its research accessible to non-experts.
OpenAI was founded in late 2015 and is led by Sam Altman, a 37-year-old entrepreneur and former head of startup incubator Y Combinator.
The company relied on the financial support of high-profile shareholders from the start, including LinkedIn co-founder Reid Hoffman, investor Peter Thiel, and Musk.
The billionaire served on the board of directors of OpenAI until 2018, but left it to focus on Tesla, the electric car company.
The startup also relies on a team of computer scientists and researchers led by Ilya Sutskiver, a former Google executive who specializes in machine learning.
OpenAI will have about 200 employees by 2021, according to a query made directly on ChatGPT.
And for now, despite the excitement generated by ChatGPT, the company still has to find a path to financial independence.
Founded as a non-profit organization, the startup became “limited for profit” in 2019 to attract more investors, and co-founder Greg Brockman said this week that a paid version of ChatGPT is in the works.
The search for financing seems necessary for a company with high expenses