Inside Microsoft’s New $10 Billion Bet

Back in 2019…

Microsoft invested $1 million on a new start up called OpenAI.

This helped launch what is now the fastest-growing app in HISTORY: ChatGPT.

It reached 100 million users in just 2 months.

For context, it took TikTok nine months to achieve the same feat.

So after this staggering growth…

Microsoft has now decided to invest $10 billion more over multiple years.

This will achieve two things:

  1. Boost Microsoft’s Azure cloud, and…
  2. Provide OpenAI with additional specially designed supercomputers to run its AI models and fuel its research

The boost in Azure is key for Microsoft…

Because it could help close the gap with AWS (Amazon’s market-leading cloud service).

Meanwhile, OpenAI uses Azure to train ALL of its models.

And Azure will remain their exclusive cloud provider.

The problem for investors?

The $10 billion deal has a complicated structure because investors in OpenAI are limited in the return on their investment since it’s a capped-for-profit company.

I urge you to AT LEAST inform yourself and get all the details because…

It’s not every day that you see a major company investing $10 billion into a tech startup with almost zero revenues.

And Microsoft is far from the only one investing in AI.

Other companies are making huge investments too – topping $150 billion.

Venture capital firms have also been investing big on AI.

They’ve invested over $1 billion per year in AI startups in each of the past two years.

In short, artificial intelligence is going to be huge.

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