Microsoft Corp. has announced that it will procure a ChatGPT bot from OpenAI, building on its existing relationship with the start-up. Microsoft plans to add the viral AI to Azure, its cloud-based service.
As per Bloomberg news, the software giant said the azure OpenAI services will be broader based now after it was initially unveiled to a select and limited set of customers in 2021.
Microsoft’s Azure services provide their customer access to OpenAI tools include the GPT-3.5 language system on which the ChatGPT operates and the Dall-E model that generates images from text-based prompts. In a blog post, Microsoft said Azure customers use products from OpenAI in their apps that they operate in the cloud.
Increased Stake in a Higher Valuation
According to people familiar with Microsoft’s plans, the company is in discussion with the start-up to invest $10 billion. The Redmond, Washington-based software giant is looking at a proposal to make multiple investments over a period, though the final terms may change. Last week Semafor, a news website, reported that potential investment from Microsoft is based on the valuation of $29 billion for OpenAI, citing people who know the negotiations.
OpenAI and Microsoft representatives declined to comment on the matter.
In 2019, Microsoft invested $1 billion in OpenAI. On the existing partnership, Microsoft now wants to get an inside edge on the most advanced AI system. This will boost its current products, competing with Alphabets Inc., Google, and Meta Platform Inc.
ChatGPT, launched in November, had fired the internet, accumulating a million users within a week. Its capability of imitating human conversation has caused speculation about its potential to supersede human writers and even threaten the core business of Google – Search.
The organization, co-founded by Elon Musk and Investor Sam Altman, earns revenue by charging developers to license their technology. The new technology follows headlines on advances made in AI towards the year’s end.
The infusion of AI in creative industries is being debated broadly, considering that Dall-E uses written prompts to synthesize art and other images. OpenAI is developing a new version of its GPT-4 model for natural language processing.
Accuracy is Still a Concern
The concern about the accuracy of ChatGPT, which Altman himself conceded, saying the bot is still not good enough to be relied upon, has prompted users to exercise caution on its premature use. Schools in New York City have banned their students from using ChatGPT.
Microsoft uses Codex from OpenAI to add automation to its Co-pilot programming tool in GitHub’s unit. It is also adding this feature along with other OpenAI tools to Azure.
Microsoft wants to adopt additional technology from OpenAI for its Office productivity apps, Bing search engine, security software, and Team chat programs.
