The best way to invest in OpenAI is to buy shares of Microsoft. The technology giant originally invested $1 billion in OpenAI in 2019. It also teamed up with OpenAI to develop new AI supercomputing technologies for its Azure cloud platform. OpenAI moved its services to the Azure platform as part of the agreement. Microsoft also became OpenAI's preferred partner for marketing new AI technologies.
In 2021, Microsoft upped its investment in OpenAI. Then came the firestorm created by the launch of the AI chatbot ChatGPT in late 2022. Microsoft quickly realized the opportunity. In January 2023, the company confirmed that it extended its partnership with OpenAI into a third phase. A key component of the expanded collaboration was that Microsoft Azure would become OpenAI's exclusive cloud provider.
Microsoft didn't reveal exactly how much additional money it invested in OpenAI in its third round of funding. However, several reports indicated that Microsoft poured another $10 billion into OpenAI. Under the terms of the deal, Microsoft reportedly will receive 75% of OpenAI's profits until it recovers its full investment. After that point, Microsoft would own a 49% stake in the smaller AI developer.
In 2023, Microsoft aggressively integrated OpenAI's technology into its applications. Microsoft's Bing search engine uses GPT-4, the most advanced large language model (LLM) released by OpenAI to date.
Microsoft also introduced OpenAI technology into its Microsoft 365 productivity apps. The new feature, Microsoft 365 Copilot, helps users generate first drafts of documents in Microsoft Word and new presentations in Microsoft PowerPoint.
Copilot enables users to quickly analyze trends in Microsoft Excel and easily create high-quality data visualizations. It summarizes email threads and suggests replies to emails in Outlook. It summarizes discussion points in the Microsoft Teams business communications platform and recommends action items.
Of course, besides its ties with OpenAI, there are other reasons to consider investing in Microsoft stock. The company ranks as a leader in several hot technology areas beyond AI, notably cloud services, gaming, and quantum computing.
2. Meta Platforms
