According to Semafor, Microsoft plans to invest $10 billion in OpenAI, the startup behind the popular artificial intelligence tool ChatGPT.
According to Semafor, who cited people familiar with the matter, the deal is part of a funding round with other investors that would value OpenAI at a whopping $29 billion.
Although it is unclear whether the deal has been finalized, term sheets sent to prospective investors indicated that the plan was to close the deal by the end of 2022, according to Semafor.
Microsoft will reportedly receive 75% of OpenAI profits until it recoups its investment, at which point the company will own 49% of OpenAI.
ChatGPT has been the talk of the tech world for several weeks. The tool is a natural language processing model, which means it is intended to generate text that appears to have been written by a human.
The AI model, which is a variant of the GPT-3 family of large language models, has been used for everything from code development to college essay writing.