Microsoft announces billions of dollars in additional investments in artificial intelligence

Microsoft has announced an additional multibillion-dollar investment in OpenAI, deepening ties with the startup behind chatbot sensation ChatGPT and paving the way for more competition with Google rival Alphabet Inc.

Microsoft is recently touting an artificial intelligence (AI) revolution, building on a bet it made on OpenAI nearly four years ago, when it committed $1 billion to the startup co-founded by Elon Musk.

Since then, it has built a supercomputer to run OpenAI technology, among other forms of support.

Microsoft has now revealed in a blog post the “phase three” of its partnership “with a multi-year multi-billion dollar investment” including supercomputer development and cloud computing support for OpenAI.

The blog post said that the two companies will be able to commercialize the resulting AI technology.

A Microsoft spokesperson declined to comment on the terms of the latest investment, which some media outlets previously reported would be $10 billion.

Microsoft is committing more resources to keep both companies at the forefront of artificial intelligence via what’s called generative AI, a technology that can learn from data how to create nearly any type of content simply from a text prompt.

OpenAI’s ChatGPT, which produces prose or poetry on demand, is the prime example that last year garnered widespread attention in Silicon Valley.

Microsoft said last week that it aims to bring such AI into all of its products, as OpenAI continues to strive to create human-like intelligence for machines.

Microsoft has started adding OpenAI technology to its Bing search engine, which is being discussed for the first time in years as a potential competitor to Google, the industry leader.

The widely anticipated investment shows how Microsoft is competing with Google, the inventor of major AI research that it plans to unveil this spring, a person familiar with the matter previously told Reuters.

Microsoft’s bet comes days after that, Alphabet each announcing layoffs of 10,000 or more workers, and Microsoft, based in Redmond, Washington, warned of stagnation and increased scrutiny of digital spending by customers in its layoff announcements.

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