Microsoft to invest $1 billion in the OpenAI

(Reuters) – Microsoft Corp said on Monday it was investing $1 billion in San Francisco based on the OpenAI, and that the two of them had been in a long-term partnership for the development of artificial intelligence, supercomputing technologies in the Microsoft Azure cloud-computing service.

Microsoft CEO Satya Nadella (R), and OpenAI’s CEO, Sam Altman, on the Microsoft campus are displayed in Redmond, Washington, united states. in this July 15, 2019 is not a hand-out photo. By Scott Eklund/Red Box Pictures/handout via REUTERS

OpenAI and was founded in 2015 is a not-for-profit organization with over $1 billion in financing from Silicon Valley investor, Sam Altman, Peter Thiel and LinkedIn co-founder Reid Hoffman, among others. Earlier this year, the group has also created a related for-profit entity to take outside investment.

Since its establishment, the OpenAI of artificial intelligence researchers to new developments in the field, such as teaching a robot with a hand perform human-like tasks entirely in software, cutting down the cost and time to train the robots.

The group has also paid attention to the safety, security and social impact of AI research on how computers are able to generate the realism with little more than a cup any suggestions and warnings of the scholars is to consider how what they do will not necessarily be able to be exploited by bad actors before they publish it.

OpenAI he said the Microsoft investment would be to assist in the pursuit of “artificial general intelligence” or AGI. A THESE the holy grail of the field, and it would mean that the computing system is master a topic, is as good, or better than, the best people in the world, and to master more than one field, then a single man.

“We believe it is of paramount importance that THESE it is used and it is safe and that the benefits are widely spread out,” Johnson said in a statement. “We are excited about how far Microsoft does not share this view.”

Microsoft said the two companies would jointly build a new AI-based technologies to the Microsoft Azure cloud-computing service. The two also said that the OpenAI, it would move around a lot, but not all, of the services provided by Azure, and Microsoft would be the “preferred” partner for the marketing and sales of new services.

The two parties have refused to reply to questions from Reuters, about the terms and conditions of the deal. Earlier this year, OpenAI is created by a for-profit limited partnership, to take on outside investment. The for-profit entity, is ultimately controlled by a non-profit board of directors.

When the OpenAI of the structure in March, said investors who put money into the for-profit entity and would have their back covered, and that the non-profit’s mission, it would have to take precedence over turning a profit.

Microsoft and OpenAI refused to answer the question of whether and how Microsoft is the rate of return on the $1 billion worth of investment would be, or how the revenue and earnings of the jointly developed technology will be shared.

The two companies declined to say whether Microsoft’s investment would have to be made in cash, or it could mean the credits for its Azure cloud computing service.

Cloud computing services are a major cost for the OpenAI, which spent $7.9 million on cloud-computing in 2017 fiscal year, which is about one-quarter of the total functional expenses for the year, according to the records of the U. S. Internal Revenue Service.

Report by Stephen Nellis in San Francisco; Editing by Peter Cooney

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular