Will ChatGPT Help Microsoft Loosen Google’s Hold on the Web Search Market?

There is a lot of hype surrounding ChatGPT, and it is for good reason since it has the potential to revolutionize human-computer interaction. ChatGPT can be used to perform complex tasks in a flexible manner, which is the reason Microsoft is considering a massive bet on it to fight back against Google for the web search market.

Microsoft plans to invest $10 billion. OpenAI, the startup behind ChatGPT, has been in talks with Microsoft about a potential investment since last month. The deal between the two would potentially see the $10 billion investment into OpenAI at a valuation of $29 billion, making it one of the most valuable startups in the US.

• The funding would include other venture firms if it proceeds.
• Documents sent to prospective investors outlined a target close date by the end of 2022, but its finalization is unclear.

However, the deal is complicated, giving Microsoft 75% of OpenAI’s profits until it regains its investment. After that, Microsoft would have a 49% stake, other investors would take the other 49% stake, and OpenAI’s nonprofit parent would take the remaining 2% stake.

• There is a varying profit cap for each set of investors.
• ChatGPT has allowed employees and investors to sell shares at a $29 billion valuation.

Is it worth it? There is no denying that ChatGPT is impressive, but it has yet to figure out a business model that turns a profit. However, once that aspect is figured out, the deal puts Microsoft in a position to recoup its investment rapidly. And what truly matters is the technology itself.

With OpenAI, Microsoft’s own products, such as Microsoft Cloud and its Microsoft Office products, will likely experience tremendous growth. Moreover, AI is being used in every industry and stands to be the most important technology for the foreseeable future.

The only downside is that there is going to be stiff competition as others rush to get their own impressive products off the ground. One of the greatest rivals will be Google, which has been a frontrunner in AI tech for some time.

Past investments: The $10 billion is not Microsoft’s first investment into ChatGPT. In 2019, Microsoft invested $1 billion in OpenAI, and since then, it has put another $2 billion into the startup. The money allowed ChatGPT to develop into what it is today by funding the massive computing power it needed.

Using ChatGPT to compete with Google: One of the ultimate goals is for ChatGPT and OpenAI to allow Microsoft to compete with Google and other competitors in key areas. While there are various products that could benefit, Bing has revealed itself as an early example.

But that is only one of the ways the technology might be used, with the possibilities being nearly limitless. Whether that will be enough to rocket Microsoft ahead of the pack is unclear, but it definitely gives the company a competitive edge.