The daily business briefing: January 24, 2023

Microsoft announces a multibillion-dollar investment in OpenAI, Spotify announces 600 layoffs in latest tech cost cutting, and more

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(Image credit: LIONEL BONAVENTURE/AFP via Getty Image)

1. Microsoft invests billions in OpenAI

Microsoft announced Monday that it was investing billions of dollars in OpenAI, the startup behind the viral ChatGPT chatbot, The Wall Street Journal reported. The possible $10 billion deal would be part of Microsoft's effort to increase the use of artificial intelligence in its software products. Microsoft has already invested $3 billion in OpenAI. The Journal reported that OpenAI had been in talks this month to sell existing shares in a deal that would value the company near $29 billion, making it one of the most valuable startups out there with very little revenue. The Microsoft investment will give OpenAI money for computing power it needs for its products on Microsoft's Azure cloud platform, the Journal said.

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