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Microsoft in Talks to Invest $10 bln in ChatGPT Owner -Semafor

Smartphone is seen in front of Microsoft logo displayed in this illustration taken, July 26, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Smartphone is seen in front of Microsoft logo displayed in this illustration taken, July 26, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
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Microsoft in Talks to Invest $10 bln in ChatGPT Owner -Semafor

Smartphone is seen in front of Microsoft logo displayed in this illustration taken, July 26, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Smartphone is seen in front of Microsoft logo displayed in this illustration taken, July 26, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Microsoft Corp is in talks to invest $10 billion into OpenAI, the owner of ChatGPT, which will value the San Francisco-based firm at $29 billion, Semafor reported on Monday, citing people familiar with the matter.

The funding includes other venture firms and deal documents were sent to prospective investors in recent weeks, with the aim to close the round by the end of 2022, the report said.

Microsoft declined to comment, while OpenAI did not immediately respond to Reuters' request for comment.

This follows a Wall Street Journal report that said OpenAI was in talks to sell existing shares at a roughly $29 billion valuation, with venture capital firms such as Thrive Capital and Founders Fund buying shares from existing shareholders.

OpenAI, founded by Tesla Inc CEO Elon Musk and investor Sam Altman, made the ChatGPT chatbot available for free public testing on Nov. 30. A chatbot is a software application designed to mimic human-like conversation based on user prompts.

The Semafor report said the funding terms included Microsoft getting 75% of OpenAI's profits until it recoups its initial investment once OpenAI figures out how to make money on ChatGPT and other products like image creation tool Dall-E.

On hitting that threshold, Microsoft would have a 49% stake in OpenAI, with other investors taking another 49% and OpenAI's nonprofit parent getting 2%, the report said, without clarifying what the stakes would be until Microsoft got its money back.

Microsoft, which invested $1 billion in OpenAI in 2019, was working to launch a version of its search engine Bing using the AI behind ChatGPT, the Information reported last week.

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First Artwork by Humanoid Robot Sells for $1.3m

Ultra-realistic AI robot Ai-Da is designed to resemble a human woman with a face, large eyes and a brown wig. Ben Stansall / AFP/File
Ultra-realistic AI robot Ai-Da is designed to resemble a human woman with a face, large eyes and a brown wig. Ben Stansall / AFP/File
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First Artwork by Humanoid Robot Sells for $1.3m

Ultra-realistic AI robot Ai-Da is designed to resemble a human woman with a face, large eyes and a brown wig. Ben Stansall / AFP/File
Ultra-realistic AI robot Ai-Da is designed to resemble a human woman with a face, large eyes and a brown wig. Ben Stansall / AFP/File

A portrait of English mathematician Alan Turing became the first artwork by a humanoid robot to be sold at auction, fetching $1,320,000 on Thursday.
The 2.2 meter (7.5 feet) portrait by "Ai-Da", the world's first ultra-realistic robot artist, smashed pre-sale expectations of $180,000 when it went under the hammer at London auction house Sotheby's Digital Art Sale, said AFP.
"Today's record-breaking sale price for the first artwork by a humanoid robot artist to go up for auction marks a moment in the history of modern and contemporary art and reflects the growing intersection between A.I. technology and the global art market," said the auction house.
The ultra-realistic robot, one of the most advanced in the world, is designed to resemble a human woman with a face, large eyes and a brown wig.
Ai-Da is named after Ada Lovelace, the world's first computer programmer and was devised by Aidan Meller, a specialist in modern and contemporary art.
"The greatest artists in history grappled with their period of time, and both celebrated and questioned society's shifts," said Meller.
“Ai-Da Robot as technology, is the perfect artist today to discuss the current developments with technology and its unfolding legacy," he added.
Ai-Da generates ideas through conversations with members of the studio, and suggests creating an image of Turing during a discussion about "A.I. for good".
The robot was then asked what style, color, content, tone and texture to use, before using cameras in its eyes to look at a picture of Turing and create the painting.
Meller led the team that created Ai-Da with artificial intelligence specialists at the universities of Oxford and Birmingham in England.
Meller said Turing, who made his name as a World War II codebreaker, mathematician and early computer scientist, had raised concerns about the use of AI in the 1950s.
The artwork's "muted tones and broken facial planes" seemingly suggested "the struggles Turing warned we will face when it comes to managing AI", he said.
Ai-Da's works were "ethereal and haunting" and "continue to question where the power of AI will take us, and the global race to harness its power", he added.