Microsoft’s $13 Billion OpenAI Investment Is A Genius Strategical Move.
There are smart business decisions and terrible ones. Let’s roleplay:
You: “Hey, AL, I just purchased a new iPad; it’ll make me work more.”
It won’t make you work more. You just liked the advertisement and wanted the device because you’re a consumer in this world. Admit it.
You: “Hey, AL, I just purchased a new ergonomic chair that will make me work more.”
Sounds smart to me. I might be self-reflecting here as I’m sitting on an uncomfortable chair while writing this article.
Let’s go bigger.Daimler (Mercedes) merged with Chrysler for $37 billion. Then, nine years later, they sold it for $7 billion. This is the definition of a bad business decision.
Disney acquired Marvel for $4 billion in 2009. Thirteen years later, Marvel is valued at $53 billion. Two of their recent superhero movies grossed $4.7 billion in revenue. That’s the definition of a good investment.
Then there’s Facebook acquiring Instagram for $1 billion. Bloomberg estimates that Instagram is worth over $100 billion today. That’s not just a good business decision. It’s winning the lottery by smartly choosing the right ticket.
Now let’s talk about Microsoft’s OpenAI investment, in which they’ll own around 49% of the company.
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