Microsoft, which is among the investors of ChatGPT’s parent company OpenAI has invested an undisclosed amount of money in Builder.ai – an AI startup that helps those without any coding languages build applications.
Headquartered in London, Builder.ai was founded by Sachin Dev Duggal in 2017 who is also the company’s current CEO.
Builder.ai provides users with an AI platform that supports building software efficiently and faster – without technical knowledge.
Commenting on the deal, Sangeeta Bavi, Executive Director of Digital Natives, Microsoft said, “This partnership will give us access to markets where we don’t have a strong presence.”
Bavi added, “As part of the partnership, Builder will become part of our ISV program that we take to large enterprises and we will create more surfaces of discovery for Builder across Microsoft products.”
Microsoft stock is outperforming the Nasdaq this year – at least in part due to its AI plans.
- Read our guide on buying Microsoft stock
Builder.ai makes what’s popularly known as “no-code” and “low-code” platforms that help tech novices build applications.
🚨*NEWS FLASH*🚨 #BuilderAI has partnered with @Microsoft 🎉
Not only will they help us in making AI powered solutions to support businesses, but they've also made a financial investment into https://t.co/DxcO7BOHoQ to show their commitment ❤️
Onwards and upwards! 🚀 pic.twitter.com/A3ER5Y1oxh
— Builder.ai (@Builderai) May 10, 2023
Speaking with CNBC, Duggal said, “We’re all convinced that the future of software is going to be where the customer doesn’t need to be technical.”
Notably, with AI making waves globally, companies like Builder.ai can help bridge the technical gap.
As for Microsoft, the company sees AI as a key revenue driver and earlier this year announced a multi-year multi-billion-dollar investment into OpenAI.
Microsoft Invests an Undisclosed Sum in Builder.ai
Like the Builder.ai investment, Microsoft did not disclose the financial terms of the OpenAI investment – but it’s widely believed to be around $10 billion.
Reportedly, OpenAI CEO Sam Altman – who is set to testify before the US Congress next week – believes that the company would need to raise $100 billion as it strives to achieve “artificial general intelligence” – which means an AI model intellectually better than humans and with the ability to improve itself.
Meanwhile, even as AI companies strive to build even more powerful models, regulators are worried about the risks including the technology’s ability to increase fraud.
Last week, US Vice President Kamala Harris met CEOs of Anthropic, OpenAI, Microsoft, and Alphabet – which would be followed by Altman’s testimony next week.
Builder.ai CEO Sees Massive Market Opportunity
Duggal is meanwhile upbeat on the Microsoft partnership and said the partnership “opens up not only a brand new customer (for Microsoft) that’s become digital native, but somebody that’s coming on to the Azure Cloud, where that building of the software is leveraging core parts of the Microsoft stack, as well as the Builder stack.”
Duggal added, “So I think from that perspective, it’s really quite holistic. And the mission really is to empower the next 100 million software applications.”
Incidentally, while there is a funding winter for most startup companies, AI is an exception – as is illustrated in Microsoft’s investment in Buillder.ai.
- Read our guide on investing in startup companies
Meanwhile, Warren Buffett and Charlie Munger have a word of caution for AI enthusiasts. While the latter said he is “skeptical of some of the hype” – the Oracle of Omaha compared AI to an “atom bomb” during Berkshire Hathaway’s annual meeting held last weekend.
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