AI Altcoins Skyrocket Amid Rumors of Microsoft Investment

AI Altcoins Skyrocket Amid Rumors of Microsoft Investment

Key Insights:

  • Microsoft's plan to invest $10 billion in OpenAI's ChatGPT remains a rumor
  • Semafor reported that Microsoft wants 75% of ChatGPT's profit
  • AI-backed tokens such as SingularityNET (AGIX), (FET), and Ocean Protocol (OCEAN) have recorded a huge surge in price value since the rumor began.                                                                     

Since the rumor filtered out that Microsoft plans to make massive investments in Artificial Intelligence (AI) altcoins, the price value of these tokens has surged.

Corroborating the rumor, Semafor, a news website, reported that the tech giant is perfecting all plans to invest $10 billion in an artificial intelligence research company, OpenAI. This plan, if actualized, will see an investment of about $10,000,000,000 in the AI space.

Significantly, it is worthy of note that OpenAI is the developer of the "viral" ChatGPT— an artificial intelligence chatbot that went viral in the tech space towards the end of 2022.

According to the rumor, Microsoft is willing to fund the chatGPT app with $10 billion alongside other unnamed venture capitalists/ firms. There are expectations that with such funding, OpenAI's valuation will rise to $29 billion. 

In the next chapter, we shall identify the details of the funding and how true the rumor could be. 


Microsoft In Talks To Fund ChatGPT

Aside from the report by Semafor, the funding and all events surrounding the funding of OpenAI's app remain a rumor until all parties involved announce it to the public. That is, Microsoft inc and OpenAI have to reveal the partnership to the public. 

However, Semafor has revealed some likely details of the funding. According to the information at their disposal, they said as part of the arrangement, if OpenAI accepts the $10 billion funding, the former would get 75% of OpenAI's profits until it recoups its investment. 

Industry players and business analysts consider this a complicated deal. They said it is unclear whether all the funds that OpenAI spends on running its Microsoft cloud computing would count when balancing the account.

Furthermore, the supposed rumor has it that once Microsoft recoups back its investment and they reach the threshold, it will revert to OpenAI's ownership structure. Asides from this structure, the arrangement will be that it will own a 49% stake, other investors will own 49%, and OpenAI's nonprofit parent will own 2%. 


How Microsoft's Purported Investment Has Influence Artificial Intelligence

One of the foremost influences of the purported investment by Microsoft is the surge in the price value of AI tokens. For instance,  SingularityNET (AGIX), a blockchain-based marketplace for artificial intelligence services, recorded about a 136% surge since the rumor filtered out. Within one week, SingularityNET native token rose to $0.11.

Similarly, (FET) is another token that has recorded a surge in its price value— due to Microsoft's investment in Artificial intelligence software. The FET native token is trading at around $0.207 (at the time of writing). This surge signified more than 91% of its pricing seven days ago.

Conclusively, another AI-backed token that has recorded an increase in price value is Ocean Protocol (OCEAN). Ocean protocol is a data-sharing network and a decentralized data exchange protocol that aims to unlock data for Artificial intelligence.  

In the last week, the Ocean Protocol (OCEAN) has seen an increase of about 37% and is trading around $0.255 at the time of writing this article.


Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.             

Related Stories

No stories found.
Voice Of Crypto