Microsoft Makes Multibillion-Dollar Investment in OpenAI

Microsoft is making a multibilllion-dollar investment in OpenAI, the pioneering artificial intelligence research lab behind ChatGPT and DALL-E, as the software giant looks to more closely tie these text and image-generating programs to its offerings.

The news comes less than a week after the company said it’s laying off 10,000 workers as a weakening economy crimps software demand. Microsoft noted in that announcement that it will still invest and hire in key priority areas. The software maker reports fiscal second-quarter earnings on Tuesday. Microsoft, which plowed $1 billion into OpenAI in 2019, is seeking an inside edge on some of the most popular and advanced artificial intelligence systems as it competes with Alphabet, Amazon and Meta Platforms to dominate the fast-growing industry. OpenAI needs Microsoft funding and cloud-computing power to crunch massive volumes of data and run the increasingly complex models that allow DALL-E to generate realistic images based on a handful of words, and ChatGPT to create astonishingly human-like conversational text in response to prompts or queries.