Microsoft (NASDAQ:MSFT) shares rose in early Monday trading after the tech giant announced a “multiyear, multibillion dollar” investment in ChatGPT maker 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,” said Microsoft Chairman and CEO Satya Nadella in a statement. “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 shares our values and we are excited to continue our independent research and work toward creating advanced AI that benefits everyone,” OpenAI CEO Sam Altman added.
Redmond, Washington-based Microsoft (MSFT) did not disclose the size of the investment, but Bloomberg reported it would be worth $10B.
Earlier this month, it was reported that Microsoft (MSFT) was in talks to make a sizable investment in OpenAI.
Wedbush Securities analyst Dan Ives said Microsoft’s (MSFT) investment showed its aggressiveness in trying to win the artificial intelligence arms race.
“In the AI race today, Nadella & Co. are ahead of the rest of Big Tech and this investment is a major notch on the AI belt,” Ives wrote in a research note.
Ives added that the investment was a change from Microsoft’s (MSFT) motto under former CEO Bill Gates after the U.S. government’s antitrust battle during the 1990s when it slowed down its investing activities.
Wedbush Securities recently said that Microsoft (MSFT) integrating ChatGPT into its products could be a “potential game changer.”