Microsoft is reportedly considering a $10 billion investment in San Francisco-based startup OpenAI, which owns ChatGPT.
The artificial intelligence-based chatbot became available to the public in November and quickly garnered both praise and criticism for its ability to churn out reams of human-sounding text based on a few simple prompts.
The chatbot is so convincing that schools across the United States are banning it from classrooms to prevent students from using it to cheat on assignments, and venture capital firms are looking into ways to use the tech in their daily operations.
Microsoft is apparently a fan of the technology. The company invested $1 billion worth of cash and cloud credits into OpenAI in 2019, and now it could be looking to increase its stake. So what is it exactly, and why is one of the biggest tech companies in the world interested?
ChatGPT uses what's called a "large language model" to read and translate text from a database and then predict future words in a sequence. This is similar to how Google Docs is able to predict the end of a sentence that you're writing, but ChatGPT is writing the entire sentence. The end result is something that sounds a lot like intelligent speech, but it's actually just a series of probabilities rapidly generated and then spit out for your reading pleasure (or displeasure).
While ChatGPT can approximate human speech, oftentimes the actual content doesn't make sense. Just scan social media for examples of how silly ChatGPT's output can be. As one critic recently argued in The Atlantic, it currently functions more as a toy than a tool.
OpenAI CEO Sam Altman also recognized that the technology has serious limits.
"ChatGPT is incredibly limited, but good enough at some things to create a misleading impression of greatness," he tweeted in December. "It's a mistake to be relying on it for anything important right now."
That said, Altman is banking on continual improvements, which could explain why Microsoft is interested.
Holiday shopping heats up as Tom’s Guide editor Kate Kozuch reveals the tech gifts everyone wants, from wellness gadgets to gaming buzz—and how to score deals!
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
The Islamic State group and other militant organizations are experimenting with artificial intelligence as a tool to boost recruitment and refine their operations. National security experts say that just as businesses, governments and individuals have embraced AI, extremist groups also will look to harness the power of AI. That means aiming to improve their cyberattacks, breaking into sensitive networks and creating deepfakes that spread confusion and fear. Leaders in Washington have responded with calls to investigate how militant groups are using AI and seek ways to encourage tech companies to share more about how their products are being potentially misused.
President Donald Trump has signed an executive order to block states from regulating artificial intelligence. He argues that heavy regulations could stifle the industry, especially given competition from China. Trump says the U.S. needs a unified approach to AI regulation to avoid complications from state-by-state rules. The order directs the administration to draw up a list of problematic regulations for the Attorney General to challenge. States with laws could lose access to broadband funding, according to the text of the order. Some states have already passed AI laws focusing on transparency and limiting data collection.
Waymo's self-driving taxis have been in the spotlight for both negative and positive reasons. This week, the automated ride-hailing taxis went viral after a San Francisco woman gave birth inside a Waymo taxi while on her way to the hospital. A Waymo spokesperson on Wednesday confirmed the unusual delivery. It said the company's rider support team detected unusual activity inside the vehicle and alerted 911. The taxi arrived safely at the hospital before emergency services. Waymo's popularity is growing despite heightened scrutiny following an illegal U-turn and the death of a San Francisco cat. The company, owned by Alphabet, says it is proud to serve riders of all ages.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
