Microsoft has been working to transform Azure into an AI supercomputer, primarily through its investments in OpenAI over the years.
US technology corporation Microsoft (NASDAQ: MSFT) has Announced a multi-million dollar investment in the artificial intelligence company OpenAI, which is also the maker of ChatGPT. The tech company noted that the investment is to advance AI advances to ensure the benefits spread across the globe. Although Microsoft did not specify the amount invested in OpenAI, Semafor reported earlier this month that the deal is worth $10 billion.
Microsoft’s latest investment in the artificial intelligence company comes after two previous financial commitments. The first two investments occurred in 2019 and 2021, respectively. Microsoft backed OpenAI with $1 billion in July 2019, making the tech company the exclusive provider of cloud computing services for the AI firm. The agreement will continue under the most recent agreement.
Explaining the plan for the OpenAI partnership, Microsoft said it would continue to develop its Azure cloud computing platform to enable customers to apply AI on a broader level. The technology company will also leverage OpenAI technology to introduce new categories of digital experiences. He also mentioned Microsoft’s Azure OpenAI service, which allows developers to build cutting-edge AI applications with direct access to OpenAI models. At the same time, Azure will support all OpenAI workloads as the exclusive cloud provider for the AI company. Microsoft CEO and President Satya Nadella commented on the relationship with 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. In this next phase of our partnership, developers and organizations across all industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications.”
Microsoft has been working to transform Azure into an AI supercomputer, primarily through its investments in OpenAI over the years. The joint venture unveiled its first top 5 supercomputer in 2020 and made further progress in building multiple AI supercomputing systems. In addition, OpenAI implemented the frameworks for its models used in Azure to power AI products.
OpenAI CEO Sam Altman also said:
“The last three years of our association have been fantastic. Microsoft shares our values and we are excited to continue our independent research and work to create advanced AI that benefits everyone.”
At press time, Microsoft shares are trading up 0.04% to $242.66 in premarket trading. This comes after the company closed 0.98% higher at $242.58. In addition to jumping 2.37% over the past month and just over 1% since the start of the year, MSFT has dipped steadily over the past year.
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Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. In addition to writing, he enjoys watching movies, cooking, and exploring restaurants in the city of Lagos, where he resides.
