REDMOND / LONDON (IT BOLTWISE) – Microsoft’s decision to invest in OpenAI was initially viewed as risky. But the billion-dollar bet has paid off, as OpenAI has now become one of the leading companies in the field of artificial intelligence.
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Microsoft’s decision to invest $1 billion in OpenAI in 2019 was anything but self-evident. Satya Nadella, the CEO of Microsoft, remembers that even Bill Gates, the company’s founder, was skeptical. Gates compared the investment to burning a billion dollars, as OpenAI was still a nonprofit company at the time. Nevertheless, Microsoft decided to take the risk, which in retrospect turned out to be a smart move.
The investment in OpenAI was a strategic move to strengthen Microsoft’s position in the field of artificial intelligence. OpenAI has since become one of the leaders in this sector, especially after the release of ChatGPT in November 2022. Within just five days of release, the chatbot reached one million users, highlighting the importance and potential of the technology.
Today, Microsoft owns a 27% stake in OpenAI’s for-profit business, worth about $135 billion. This investment has not only increased the value of OpenAI, but also Microsoft’s share price, which has risen almost 29% this year. The partnership between Microsoft and OpenAI shows how important strategic investments in emerging technologies can be.
OpenAI’s restructuring, with the non-profit organization OpenAI Foundation now overseeing the new public benefit corporation OpenAI Group PBC, demonstrates the company’s adaptability and growth potential. These changes allow OpenAI to continue developing innovative AI solutions while keeping societal benefits in mind.
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