Microsoft’s billion-dollar OpenAI investment was trigged by Google fears, emails reveal

Microsoft invested $1 billion in OpenAI in 2019 because it was “very worried” that Google was years ahead in scaling up its AI efforts. An internal email, titled “Thoughts on OpenAI,” between Microsoft CTO Kevin Scott, CEO Satya Nadella, and co-founder Bill Gates reveals some of the high-level discussions around an investment opportunity in the months before Microsoft revealed the partnership.

Some of Google’s early AI models helped it have a competitive advantage against Bing, said Scott, and he even praised Google’s autocomplete features in Gmail that were “getting scarily good” in 2019. Nadella responded to Scott’s thoughts on OpenAI by forwarding it to Microsoft CFO Amy Hood, noting that this is “why I want to do this.

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