OpenAI Seeks Additional Microsoft Funding to Turbocharge Generative AI Development
In Brief
Sam Altman, CEO of OpenAI, envisions further financial support from Microsoft as he steers the company towards developing artificial general intelligence (AGI) — software with human-like intelligence.
Altman recently praised the current partnership with Microsoft, led by CEO Satya Nadella, for its effectiveness and mutual profitability, and anticipates more funding from the tech giant and other investors to sustain the high costs of developing advanced AI models.
Microsoft’s Significant Investment in OpenAI
Earlier this year, Microsoft invested $10 billion in OpenAI under a multiyear agreement, valuing the San Francisco-based company at $29 billion. Altman hopes for continued investment from Microsoft, considering the substantial resources required to achieve AGI, including extensive computing power and training expenses.
Despite good revenue growth this year, OpenAI remains unprofitable due to the hefty training costs of its AI models. However, Altman is optimistic, highlighting the beneficial aspects of the Microsoft partnership and its implications for both companies’ successes.
New Developments and Business Model for OpenAI
OpenAI recently unveiled new tools and updates to its GPT-4 model, attended by Nadella. These include customizable versions of ChatGPT and a GPT Store, resembling Apple’s App Store in revenue sharing with popular GPT creators. Altman clarifies that these offerings are conduits to OpenAI’s core product of ‘intelligence in the sky.’
Altman said he balances his time between researching superintelligence and developing computing power to achieve it. He envisions creating safe artificial general intelligence (AGI) that benefits humanity, working on more autonomous agents capable of complex tasks and actions.
OpenAI is currently developing its next AI model iteration GPT-5, that would require more data from both public and proprietary sources. While its capabilities are uncertain, Altman stressed the importance of predicting new model skills for safety.
OpenAI relies on Nvidia’s H100 chips for training its models, facing a supply crunch this year. Although Altman anticipates better supply next year, he acknowledges the emerging competition in AI chips from companies like Google, Microsoft, AMD and Intel.
With the release of ChatGPT, OpenAI has taken an early lead in generative AI. Altman believes large language models are crucial for AGI development, differentiating OpenAI’s approach from competitors who might undervalue the role of language in developing intelligence.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
More articles
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
