Microsoft has been working on transforming Azure into an AI supercomputer, primarily through its investments in OpenAI over the years.
American technology corporation Microsoft (NASDAQ: MSFT) has announced a multibillion-dollar investment in Artificial intelligence company OpenAI, which is also the maker of ChatGPT. The tech company noted that the investment is towards advancing AI breakthroughs to ensure the benefits spread across the world. Although Microsoft did not specify the amount invested in OpenAI, Semafor reported earlier this month that the agreement is worth $10 billion.
Microsoft’s latest investment in the artificial intelligence company comes after two previous financial commitments. The first two investments happened in 2019 and 2021, respectively. Microsoft backed OpenAI with $1 billion in July 2019, which made the tech company the exclusive cloud computing services provider for the AI firm. The agreement will continue under the most recent deal.
Explaining the plan for the partnership with OpenAI, Microsoft said it would continue to develop its cloud computing platform Azure to enable customers with AI applications on a broader level. The tech company will also leverage OpenAI’s technology to introduce new categories of digital experiences. It also mentioned Microsoft’s Azure OpenAI Service, which enables developers to build cutting-edge AI applications with direct access to OpenAI models. At the same time, Azure will back all OpenAI workloads as the exclusive cloud provider for the artificial intelligence company. The CEO and Chairman of Microsoft Satya Nadella commented on the relationship with OpenAI:
“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. In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications.”
Microsoft has been working on transforming Azure into an AI supercomputer, primarily through its investments in OpenAI over the years. The joint venture unveiled its first top-5 supercomputer in 2020 and moved further in constructing multiple AI supercomputing systems. Additionally, OpenAI deployed the infrastructures for its models used in Azure to power AI products.
OpenAI’s CEO Sam Altman also said:
“The past three years of our partnership have been great. Microsoft shares our values and we are excited to continue our independent research and work toward creating advanced AI that benefits everyone.”
At press time, Microsoft stock is trading up 0.04% to $242.66 in premarket trading. This comes after the company closed up 0.98% to $242.58. Apart from jumping 2.37% over the past month and a little more than 1% since the year began, MSFT has been steadily plunging for the past year.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
Source: https://www.coinspeaker.com/microsoft-investments-openai/