The major investment in artificial intelligence startup OpenAI may close in the very near future. As we’ve been reporting this week over at Fortune, Microsoft is considering a $10 billion investment in the company, on top of the $3 billion that the company appears to have already invested, according to documents and sources. The deal structure, which includes preferential terms for Microsoft and a separate tender offer involving venture capitalists, is all very unusual.
No matter how you look at it, billions of dollars is a lot of money—particularly in 2023, and for a minority investment in a company. It’s evident that Microsoft and other investors see enormous potential in OpenAI technology. And hey, it’s hard not to. I’ve been experimenting with ChatGPT myself, and it’s exciting to brainstorm all the possibilities of how generative A.I. could help me better research my stories. ChatGPT can already write source code, draft up a compelling email template or party invitation, and help a parent convey to their child the truth about Santa Claus without spoiling the magic of the season. But as of now, there are some self-evident limitations one might expect for an A.I. tool still in the research phase. For example, ask ChatGPT who writes Term Sheet, and the bot will confidently say Dan Primack, who left Fortune more than six years ago to join Axios.
