Microsoft Considering Major Investment in Chatbot Technology

Microsoft is in talks to invest up to $10 billion in OpenAI, the company behind the viral artificial intelligence bot ChatGPT, according to people familiar with the matter.If the deal goes through, it would be one of the largest investments by a tech giant in an artificial intelligence startup.
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The proposal currently under consideration would have the Redmond, Washington-based software giant investing the money over multiple years. However, the final terms may change, according to sources who asked not to be named since they were discussing a private matter. The two companies have been discussing the deal for months, the sources added.
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Semafor earlier reported that the potential investment would involve other venture firms and could value OpenAI at about $29 billion. Documents sent to investors had targeted end-2022 for a deal closing.
Microsoft and OpenAI representatives both declined to comment when asked about the partnership.
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Since launching at the end of November, ChatGPT has been a hit with internet users, gathering its first million users in less than a week. Its imitation of human conversation has sparked speculation about its potential to supplant professional writers and even threaten Google’s core search business. The organization behind it, co-founded by Elon Musk and Silicon Valley investor Sam Altman, makes money by charging developers to license its technology.
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OpenAI's new technology is based on the GPT-3 language model, and comes after a year of significant advances in AI. The company's Dall-E image-generating model, which can create images from written prompts, has generated a lot of discussion about the impact of AI on creative industries. OpenAI is already working on the next generation GPT-4 model for natural language processing.
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ChatGPT is a chatbot that uses artificial intelligence to generate responses to questions. Some people believe that ChatGPT is a sophisticated robot that can hold intelligent conversations, while others believe that it is a machine that spreads misinformation.
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Google's dominance in the search engine market is facing a challenge from a number of AI startups, including OpenAI. These companies are using artificial intelligence to develop new search technologies that could eventually threaten Google's position. While Google is still the clear leader in the space, it is important to keep an eye on these up-and-coming companies.
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Microsoft has previously invested about $1 billion in OpenAI. It is also working to add ChatGPT to its Bing search engine, seeking an edge on Alphabet Inc.'s dominant search offering. The bot is capable of responding to queries in a natural and humanlike manner, carrying on a conversation and answering follow-up questions, unlike the basic set of links that a Google search provides.
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Still, concerns about its accuracy have prompted caution about its premature use, and New York City schools have banned its students from accessing ChatGPT.
ChatGPT is very limited, but good enough at some things to create a misleading impression of greatness. However, it would be a mistake to rely on it for anything important right now. ChatGPT is a preview of progress; there is still a lot of work to be done in terms of robustness and truthfulness.