The investment is part of a funding round involving other investors that would value OpenAI at a whopping $29 billion. OpenAI is behind the popular artificial intelligence tool ChatGPT.

ChatGPT has been the talk of the tech world for a few weeks now. This tool can produce amazing answers to a wide range of questions and different writing prompts on an almost human level. ChatGPT is trained on a large sample of text taken from the internet and interacts with users in the form of a dialogue. It works so well that New York City schools have banned its use on all of their devices and networks due to concerns that students might use it to cheat.

The new investment round would roughly double OpenAI's valuation from the previous investment series completed in 2021, when OpenAI was valued at about $14 billion. OpenAI has generated revenue in the tens of millions of dollars, in part by selling its artificial intelligence software to developers. However, some investors have expressed skepticism that the company can generate significant revenue from the technology. Microsoft reportedly plans to incorporate ChatGPT's technology into its Microsoft 365 software and Bing search engine.

OpenAI, headed by tech investor Sam Altman, was founded in 2015 as a non-profit organization with the goal of continuing research into artificial intelligence for the benefit of humanity. Its early backers included Elon Musk, LinkedIn co-founder Reid Hoffman, and Mr Altman.

Microsoft will reportedly get a 75% share of the company's profits until it recoups its investment, after which it will take a 49% stake in the company. However, no final agreement has been reached for now and terms are subject to change.