OpenAI, the artificial intelligence research laboratory co-founded by Elon Musk, has reached a valuation of $80 billion following a new investment from Microsoft, according to reports.
Microsoft is said to be investing around $10 billion in OpenAI as part of a deal that was signed last month. This huge influx of capital from the tech giant has resulted in OpenAI’s value skyrocketing to $80 billion, making it one of the most valuable startups in Silicon Valley.
OpenAI was founded in 2015 as a non-profit with the goal of developing artificial general intelligence (AGI) that can match or exceed human abilities. The San Francisco-based lab is the creator of ChatGPT, the viral conversational AI chatbot that has amazed people with its human-like responses.
The collaboration with Microsoft started in 2019 when the company initially invested $1 billion into OpenAI. With this new multi-billion dollar deal, Microsoft appears to be betting big on OpenAI’s technology and aiming to further integrate it into its products.
“We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” said Microsoft CEO Satya Nadella in a statement.
The huge injection of funds from Microsoft will likely accelerate OpenAI’s research efforts in natural language processing, computer vision, and other areas of artificial intelligence. However, some experts warn that such vast resources being poured into one AI lab could lead to reduced innovation if smaller startups are unable to compete.
Nonetheless, with its new sky-high valuation and strengthened alliance with Microsoft, OpenAI looks set to remain at the forefront of artificial intelligence development in the years ahead.
