- Microsoft has confirmed a “multibillion-dollar investment” in ChatGPT bot maker OpenAI, making its biggest bet yet that artificial intelligence systems have the power to transform the tech giant’s business model and products.
- People familiar with the talks previously said OpenAI was seeking $10bn from Microsoft at a $29bn valuation.
- The deal comes just a few days after Microsoft chief executive Satya Nadella announced plans to shed 10,000 workers — or nearly 5 per cent of its staff — in an effort to cut costs in response to the tech downturn.
- The stake in OpenAI comes with a belief that AI represents a technology that could transform Microsoft, helping it develop new “productivity” software alongside its Office applications and even renewing its challenge for market share against Google in search.
- The deal also secures Microsoft’s position as exclusive cloud computing provider to one of the world’s leading AI start-ups, in a boost to its Azure cloud business.
FirstFT: Microsoft's big bet on AI
Also in today’s newsletter, China official says holiday travel is low risk and ex-FBI agent charged over Deripaska ties
Gary Jones
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