Microsoft eyes $10bn investment in ChatGPT creator - reports

Microsoft is reportedly in discussions to invest as much as $10bn in OpenAI, the creator of viral artificial intelligence bot ChatGPT.

Citing people familiar with the plans, Bloomberg said the proposal under consideration calls for Microsoft to put the money in over several years, though the final terms may change. It was understood the two companies have been discussing the deal for months.

News platform Semafor reported earlier on Tuesday that the potential investment would involve other venture firms and could value OpenAI at about $29bn. Semafor cited people familiar with the matter as saying that it was unclear whether the deal has been finalised but that documents sent to prospective investors in recent weeks outlining its terms suggested a targeted close by the end of 2022.

According to Semafor, Microsoft’s infusion would be part of a complicated deal in which the company would get 75% of OpenAI’s profits until it recoups its investment.

After that threshold is reached, it would revert to a structure that reflects ownership of OpenAI, with Microsoft having a 49% stake, other investors taking another 49% and OpenAI’s non-profit parent getting 2%.