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- ChatGPT has become the talk of the town as users are shocked by how impressive this new technology is. The chatbot can write poetry, create content and even help solve problems. The uses of the product are wide, and those who try it can’t help but rave about it.
- Microsoft now plans to invest $10 billion in OpenAI, which would bring the AI startup’s valuation to $29 billion as they look to monetize the chatbot in 2023.
- The field of artificial intelligence is changing rapidly, and tech giants are trying to invest billions of dollars in this area in a race to create the best new tools.
You can’t turn anywhere without hearing about ChatGPT’s revolutionary AI platform. The product can write a surprising amount of material from poetry to marketing copy. Advances in artificial intelligence have been more impressive than ever in recent months. Microsoft plans to invest $10 billion in OpenAI, the maker of ChatGPT, as the company tries to become more competitive with other tech giants in some markets.
We will find out why Microsoft even wanted to invest such a large amount of capital in this startup. We will also see what this news means AI Investors as we see tech companies struggling in 2022.
What is ChatGPT all about?
ChatGPT is the chatbot which was released late last year by OpenAI, a company that Elon Musk and Sam Altman originally started. The product had more than one million users in the first week of December, and I could not stop hearing about the different capabilities on social media and elsewhere. However, the popularity of the product also means that the tool is burning for cash due to the pressure put on the servers by the rapid adoption. The program uses OpenAI’s GPT-3.5 language mode, an updated model version released in 2020.
ChatGPT adopters used the product for both fun and functional purposes. You can have the chatbot write wedding speeches, create messaging for dating apps, write your marketing copy for you, and even give complex orders directions to follow. That being said, there has been a lot of speculation about what’s next for this revolutionary tool. Finally, we have some suggestions on how this product fits into the market.
Microsoft plans to invest $10 billion in OpenAI
Semafor reported that Microsoft was considering putting $10 billion into OpenAI, the company responsible for ChatGPT. The next round of funding will include Microsoft and other venture firms, bringing the AI startup’s valuation to $29 billion.
Microsoft said it will put up $10 billion for a share of 75% of the profits that OpenAI earns until the money on the investment is paid back. So, when Microsoft breaks even on the $10 billion investment, they will have a 49% stake in OpenAI. None of this has been confirmed by either side, but reports have been circulating for over a week. While the deal seems slightly complicated from the outside, there is no confirmation if the infusion of money has happened. Documents sent to prospective investors outline the terms, and a target closing date has been set for the end of 2022.
Microsoft has already invested in this startup in earlier stages. In 2019, Microsoft initially invested $1 billion in the San Francisco startup to help get the product off the ground. Since then, Microsoft has quietly invested another $2 billion in the product, according to industry sources.
Why is Microsoft planning to invest in OpenAI?
Microsoft is looking to compete with other tech giants in the AI space. Notable competitors like Google and Amazon have already invested heavily in the field of AI. We see the power of AI with Google from the precise directions of the Maps product to the accuracy of our photos are stored. Amazon relies on the power of AI for various aspects of its business, from recommending products to customers on the online business platform to the Alexa device that many of us have in our living rooms.
Microsoft is trying to compete with Google
Microsoft may be looking to become more competitive in search engine results as the global arms race in AI continues. It’s no secret that Google dominates the search engine market, as Microsoft’s Bing only has a small fraction of the market share. You rarely hear someone refer to “binging” for something as the term “googling” has become synonymous with searching for something online. It looks like Microsoft is ready to become competitive in this space as it plans to incorporate ChatGPT into BIng for more accurate and useful search results.
According to analysts, Microsoft has many opportunities to add ChatGPT technology to its current product offerings. The AI-powered tool could improve the Bing search engine, add value to Microsoft Office products and become valuable on the Azure cloud platform.
How is Microsoft involved in AI?
Microsoft has launched Microsoft Designer, a graphic design app that uses the power of AI to create graphics and social media images from scratch. Microsoft also operates an entire portfolio of AI-related services under the Azure platform. The company too announced a partnership with Meta to provide the workplace of the future.
The paid version of ChatGPT is here
OpenAI recently revealed that they would be switching over to the chatbot soon, and many users expected monetization to begin in the near future. The premium version of the product would be called ChatGPT Professional. This pro version will have no downtime windows, faster responses (no throttling) and as many messages as you need.
The prices for the premium product have not been announced yet since the company seems to still understand this part, but it is clear that there is no pressure on the company to start the monetization process.
When we first wrote about ChatGPT, we mentioned how a recent investor presentation indicated that the company planned to bring in $200 million in revenue in 2023 and $1 billion annually by 2024. At the time, the In the beginning, only revenue was generated by charging developers license fees. for the use of technology. Now it seems that a premium version will be coming soon. The waitlist link does not include any information about possible prices, as the survey was designed to ask about possible price points.
What does this mean for AI investors?
We recently wrote about it ChatGPT and FROM-E 2, two innovative products that have been revolutionary for consumer AI. These have an impact between different industries, and we still have to understand how to proceed with these new tools from a commercial and ethical position.
If you’ve invested in AI, you know it’s been a challenging year for the space. Recently we have seen some of the main AI stocksand we discovered that many publicly traded companies have fallen significantly in 2022.
The $10 billion investment in ChatGPT means that the tech giants will continue to invest in the advancement of AI going forward. While stocks in this sector did not have a good year in 2022, there is optimism that the overall market will rebound in 2023. Most companies that rely on the power of AI are not only concentrated in this sector. For example, Tesla hosts an annual AI day where they actively recruit the sharpest and most talented minds in the field, but the company is focused on electric vehicles.
How to invest in the market with AI
You don’t need more to see the power of AI in action, as Q.ai was created to use AI to offer investment options for those who don’t want to follow the stock market at all day.
Q.ai uses three key methods to help investors make money. These include:
- Creation of investment kits. This involves selecting stocks and other securities to be placed in a diversified Kit. AI is leveraged to evaluate every possible investment every week to bundle products into Kits like precious metalstechnology and more.
- Mitigate risks while trying to grow your portfolio. AI weights the assets in each Investment Kit to reduce risks, a truly unique and highly effective application for the everyday investor.
- Offer Portfolio Protection. This is a function that uses AI to predict and forecast possible risks in the market to adjust allocations even more to protect against losses.
If you really want to make money from AI, your best bet is to invest in the broader market via Q.ai. AI powered Investment Kits make investing easy and strategic.
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