Microsoft Announces Multi-Billion Dollar Investment in OpenAI Partnership Extension

Microsoft has announced a new "multiyear, multibillion dollar investment" in its long-term partnership with OpenAI. The investment comes just weeks after rumors that Microsoft would be investing $10 billion into OpenAI, the creators of popular AI tools like ChatGPT and DALL-E 2.

The partnership will focus on increasing investments in the development and deployment of specialized supercomputing systems to accelerate OpenAI's independent AI research. Microsoft will also continue to build out Azure's leading AI infrastructure to help customers build and deploy their AI applications on a global scale.

This partnership will focus on innovations that have captivated imaginations and introduced large-scale AI as a powerful, general-purpose technology platform that we believe will create a transformative impact on the magnitude of the personal computer, the internet, mobile devices, and the cloud.

This news comes less than a week after the company announced that it will lay off 10,000 workers as the economy weakens and software demand decreases. However, Microsoft noted that it will still invest and hire in key priority areas. The software maker reports fiscal second-quarter earnings on Tuesday. While Microsoft didn't disclose the value of its investment, a person familiar with the discussions said it totals $10 billion over multiple years.