Microsoft's $13 Billion Investment in OpenAI May Be "Some of the Best Money Ever Spent," According to Certain Wall Street Analysts
In 2019, (NASDAQ: MSFT) invested its first $1 billion in OpenAI, a San Francisco-based start-up focused on artificial intelligence (AI). At the time, Microsoft worried it had fallen "multiple years behind the competition in terms of machine learning," according to messages between Chief Technology Officer Kevin Scott, CEO Satya Nadella, and co-founder Bill Gates.
In particular, Microsoft was worried about recent technological advancements made by Alphabet's Google, a long-standing leader in AI research through its DeepMind subsidiary. Microsoft pounced on what it saw as a chance to level the playing field by investing in OpenAI. The companies have since extended their partnership such that Microsoft's total funding commitment stands at $13 billion.
In late 2022, OpenAI introduced ChatGPT, which quickly became the fastest-growing consumer application in history, reaching 100 million monthly active users in two months. Shortly thereafter, JPMorgan Chase analysts wrote, "We think that Microsoft's investment into OpenAI, which started years ago, could potentially prove to be some of the best money ever spent."
Source Fool.com
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