What does Microsoft’s $1 Billion investment means for OpenAI — the AI startup founded by Elon Musk and Sam Altman?

Techie Fiber
3 min readAug 4, 2019

--

Source: twitter.com/OpenAI

OpenAI is a relatively new startup in town and is already making ushers and waves for their cutting edge AI technologies. Recently, OpenAI was in the news for building AI Bots that fought bravely and also won against some of the DOTA2 pros.

OpenAI is an startup whose mission is to ensure that Artificial General Intelligence benefits all humanity. Here are the words of Greg Brockman, the CTO and co-founder of OpenAI:

OpenAI’s goal is to build safe Artificial General Intelligence. AI can be very beneficial to humanity and it’s going to require fundamental advances to really see what it’s capable of”

— Greg Brockman, CTO and co-founder, OpenAI

OpenAI CEO Sam Altman (left) with Microsoft CEO Satya Nadella (right). Photo: Microsoft

Recently Microsoft invested $1 Billion investment into OpenAI. This is very important to note because this partnership changed the structure of OpenAI. OpenAI went from not-for-profit company to a capped-profit company.

This makes it very interesting, so to know why this is interesting, Let’s dive right in:

1. Commercializing the Intellectual Property of OpenAI:

Image Source: OpenAI

OpenAI is aiming to expand what other AGI system are not yet capable of executing. Like the super accurate dexterity experiments that were demonstrated recently. And this is just one of the arrows in OpenAI’s quiver.

Think what if they are able to mix it more advanced robotics and many other fields. There are just endless possibilities. And with that comes Big Money🤑 too.

2. Microsoft Azure and OpenAI:

Source: Facebook/Microsoft Azure

I am not going to talk about how much useful OpenAI is going to be for Super-Computing systems at Microsoft Azure, we already know that.(Also because my knowledge about that is limited 😂)What’s more interesting to know that is that, in future, people who partner with OpenAI, could be made to use Microsoft Azure for the exclusive services. Thus bringing in new businesses and locking them into the Microsoft Azure environment. Very similar to how Apple have locked consumers into their own environment.

3. Microsoft does not want to miss the trend, that is AGI:

Satya Nadella, CEO Microsoft | Source: Microsoft

Microsoft missed the Smartphone trend. Microsoft missed the Mobile OS trend. And there are a bunch of other micro trends that Microsoft have missed. One trend they got into at the right time is cloud computing through the Microsoft Azure services. Partnering with OpenAI can prove to be a diamond mine for the future🔮 of Azure.

Also this helps Microsoft get in the trend of responsible Artificial Intelligence, 🤖the market for whose is still very ripe, very early and potentially worth Billions of dollars.

So these were 3 of the main points I believe makes sense for Microsoft investing into OpenAI. Let me know😃 in the responses about what you feel about any of the above points. Thank You🙌!

--

--

Techie Fiber

We believe the FUTURE is EXCITING. This is WHY we wish to inspire people for the future. Our tools for this goal are Science and Technology.