This is a multi-year deal.
Microsoft intends to expand its collaboration with OpenAI by announcing a “multi-year, multi-billion dollar investment.” The relevant information was published on the official OpenAI blog. Earlier it became known that Redmond intends to allocate about $ 10 billion for the development of the company’s AI systems. The amount was confirmed by Bloomberg journalists, citing an anonymous insider.
Microsoft’s current investment in OpenAI is yet another cash injection into a promising startup. Moreover, the lion’s share of the money provided will be used to use the capacities of the Azure service. According to Anurag Rana, an analyst with Bloomberg Intelligence, the use of Azure capacity is the most important point of the agreement for Microsoft, as it is now seriously engaged in expanding its cloud business. According to the analyst, this should help Redmond to close the gap with AWS.
Microsoft intends to use OpenAI models not only in existing consumer products, but also in completely new software samples. One of the most obvious solutions for future integrations of OpenAI developments is the introduction to the Bing search engine. You can also talk about boosting standard office applications, Teams chat and security software with the help of AI.
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After making a “multi-year, multi-billion dollar investment,” OpenAI will remain a non-profit organization with limited profits. Insiders claim that Microsoft will only receive half of OpenAI’s revenue until its investment pays off up to a set limit.