We're talking about Microsoft's hefty $10 billion investment in OpenAI, a company that focuses on creating chatbots based on AI, or artificial intelligence. Microsoft, like other tech giants, wants to innovate and not fall behind the competition. This is also the reason for such a marquee investment, which is still only being discussed and discussions have apparently been going on for several months, according to Bloomberg. Bloomberg also posted the news on its Twitter account.
ChatGPT, a chatbot is based on artificial intelligence and is specific in its ability to solve problems promptly. It was launched as a prototype on November 30 last year and has become popular among internet users due to its simple user interface and easy approach to problem solving. Microsoft plans to add the chatbot to its Bing search engine to make it more accessible to its users while competing with other browsers.
Microsoft's investment in OpenAI should boost and reflect in the company's results. Back in 2019, the giant talked about its plans to invest $1 billion in OpenAI, and the two companies entered into a partnership at the time that aims to expand Azure's reach in large-scale artificial intelligence systems. Despite the news, Microsoft shares have fallen about 5% over the past week.*
Performance of Mocrosoft Corp. stock over 5 years. Source: tradingview.com
* Past performance is no guarantee of future results.
