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Microsoft Makes 'Multibillion Dollar' Investment in ChatGPT Creator OpenAI

Terms of the deal were not revealed, but reports suggest that Microsoft could be investing as much as $10 billion in the San Francisco lab, which is behind ChatGPT and DALL-E 2.

 & Michael Kan Principal Reporter

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Microsoft is pouring billions more into OpenAI, the lab behind ChatGPT, an AI program that could challenge Google’s search engine. 

On Monday, Microsoft announced it’s making a “multiyear, multibillion dollar investment” into OpenAI to help accelerate research at the San Francisco-based lab. The companies didn’t reveal the exact investment amount. But Microsoft has been mulling a $10 billion investment in the company, according to Semafor, which cites unnamed sources familiar with the deal. 

Microsoft’s goal is to commercialize any resulting AI breakthroughs from the partnership. In return, OpenAI will receive funding to build up the supercomputing behind ChatGPT, a powerful chatbot program that can answer questions, generate essays, and even write computer code. OpenAI is also behind DALL-E 2, another AI program that can generate professional art from mere lines of text. 

“Microsoft will deploy OpenAI’s models across our consumer and enterprise products and introduce new categories of digital experiences built on OpenAI’s technology,” Redmond said in its announcement. Hence, you can expect ChatGPT and DALL-E 2 to become mainstream features in the Bing search engine and Microsoft Office software. 

In addition, Microsoft plans on making the AI programs exclusively available to companies through its Azure OpenAI platform, allowing software developers to build apps and services  around ChatGPT. 

Microsoft already invested $1 billion in OpenAI in 2019 to help fund the program's development. With its latest $10 billion round, Microsoft will get 75% of OpenAI's profits until the investment is recouped. Redmond will then take a 49% share of the lab, according to Semafor.

The partnership could put pressure on Google, which has been scrambling to respond to ChatGPT’s growing popularity. A recent survey found that 27% of working professionals are already using the AI-powered chatbot for job tasks. 

Microsoft and OpenAI didn’t immediately respond to a request for comment.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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