Per Reuters

Microsoft initially invested $1 billion in the ChatGPT maker OpenAI in 2019. The company has announced that their partnership will enter the "third phase" and come with a multi-billion investment.

This comes as Microsoft is trying to ramp up its efforts to compete with its rival, Alphabet Inc's Google, which still dominates the search engine and browser space. The Windows company has previously announced plans to incorporate OpenAI's products, like ChatGPT, into its Bing search engine and other products.

The report notes that this could be the first time in years that Microsoft actually has a shot at becoming a potential rival to the already dominating Google, whose search engine has a market share of 84.08%, per Statista.

Suppose Microsoft could successfully integrate AI into its products. In that case, this could positively affect the company as ChatGPT has proven to be extremely popular and has risen to massive heights of users in just a short span of time. Microsoft highlighted that they would enter a multiyear, multibillion investment with OpenAI.

"Today, we are announcing the third phase of our long-term partnership with OpenAI through a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world."

OpenAI, as some people don't know, was actually co-founded by Elon Musk and Sam Altman. However, Musk had to leave the company due to a potential conflict of interest against Tesla's AI.

The ChatGPT maker has also recently been talking about potentially selling its existing shares at a whopping $29 billion valuation. Two major venture-capital firms that entered the talks of potentially purchasing shares are Founders Fund and Thrive Capital.

It remains unclear if OpenAI will push through with its plan to sell existing shares with a potential $10 billion, as estimated by various sources, investment from Microsoft. The public will have to see whether the ChatGPT maker will decide to push through with its sale of existing shares.

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Resources:

Reuters

Statista