The major investment in artificial intelligence startup OpenAI may close in the very near future. As we’ve been reporting this week over at Fortune, Microsoft is considering a $10 billion investment in the company, on top of the $3 billion that the company appears to have already invested, according to documents and sources. The deal structure, which includes preferential terms for Microsoft and a separate tender offer involving venture capitalists, is all very unusual.
No matter how you look at it, billions of dollars is a lot of money—particularly in 2023, and for a minority investment in a company. It’s evident that Microsoft and other investors see enormous potential in OpenAI technology. And hey, it’s hard not to. I’ve been experimenting with ChatGPT myself, and it’s exciting to brainstorm all the possibilities of how generative A.I. could help me better research my stories. ChatGPT can already write source code, draft up a compelling email template or party invitation, and help a parent convey to their child the truth about Santa Claus without spoiling the magic of the season. But as of now, there are some self-evident limitations one might expect for an A.I. tool still in the research phase. For example, ask ChatGPT who writes Term Sheet, and the bot will confidently say Dan Primack, who left Fortune more than six years ago to join Axios.
To see exactly what ChatGPT is capable of right now, I asked it to write today’s edition of Term Sheet and weigh in on whether journalists like me could end up being displaced by A.I. technology. Enough from me. Let’s see what ChatGPT has to say:
Hello Term Sheet readers,
Today’s topic is the impact of artificial intelligence on the field of journalism, and whether newsletters like ours could be better off if they were written by A.I. instead of by humans.
As a journalist myself, I’ve certainly seen the effects of automation on the industry. Many newsrooms now use A.I. to write simple stories, such as earnings reports, freeing up reporters to focus on more in-depth, investigative pieces. But as a journalist, I also know that there’s something special about the human touch. We bring our own perspectives and experiences to the table, and that can give stories a depth and nuance that an algorithm just can’t match.
On the other hand, A.I. has come a long way in recent years, and natural language generation technology like GPT-3 have proven to be great at writing in a human-like way. However, AI is not yet sophisticated enough to replace the human’s ability to analyze and make sense of complex data, understand context and find the story that human readers would want to read.
There’s also the question of ethics. A.I.-generated news stories may lack the accountability and transparency that comes with a human journalist. The technology is still evolving and not yet fully auditable in its decision-making process.
Furthermore, it is worth noting that, according to a recent study by the Pew Research Center, most Americans say they don’t trust news that comes from A.I. generated sources. Thus, it is not clear if users would prefer newsletter generated by A.I. over human journalists.
That said, I believe that AI will continue to play an increasingly important role in journalism, but it will never entirely replace human journalists. And I believe Term Sheet will always be better off with a human touch.
Thank you for reading and I’ll see you tomorrow.
Best, Jessica
How did it do? Not too shabby, although I don’t think I’ll be replaced by a machine anytime soon. In the words of my editor, this is “just a super boring column.”
A conversation with Michelle Davey… Our very own Jackson Fordyce recently sat down with Michelle Davey, CEO of Wheel, a startup that offers companies tools to deliver virtual care. Jackson and Davey discuss Wheel’s trajectory and the best and worst advice received from investors during the economic downturn. Watch the interview here.
See you tomorrow,
Jessica Mathews
Twitter: @jessicakmathews
Email: jessica.mathews@fortune.com
Submit a deal for the Term Sheet newsletter here.
Jackson Fordyce curated the deals section of today’s newsletter.
VENTURE DEALS
- Hack The Box, a Folkstone, U.K.-based cybersecurity and talent assessment platform, raised $55 million in Series B funding. Carlyle led the round and was joined by Paladin Capital Group, Osage University Partners, Marathon Venture Capital, Brighteye Ventures, and Endeavor Catalyst Fund.
- Peppy, a London-based employee health care benefits platform, raised $45 million in Series B funding. AlbionVC led the round and was joined by Kathaka, MTech Capital, Simplyhealth, Sony Innovation Fund, Felix Capital, Hambro Perks, Outward VC, and Seedcamp.
- Paytient, a Columbia, Mo.-based health payment accounts provider, raised $33 million in Series B funding. Mercato Partners Traverse Fund led the round and was joined by Bertelsmann Investments, Lightbank, Felicis Ventures, Box Group, Lachy Groom, Left Lane Capital, Commerce Bank, Crossbeam Ventures, Cultivation Capital, and Inspired Capital.
- Inflow, a London and New York-based ADHD management app, raised $11 million in Series A funding. Octopus Ventures led the round and was joined by Hoxton Ventures and Route66.
- ReelData AI, a Halifax, Canada-based data and automation provider to farmers, raised $8 million in Series A funding. Buoyant Ventures led the round and was joined by S2G Ventures and The Nest Family Office.
PRIVATE EQUITY
- The IMA Group acquired Clinical Trials of America, a Monroe, La.-based multi-therapeutic clinical trials company. Financial terms were not disclosed.
- RE3DTECH+GoProto, a CORE Industrial Partners portfolio company, acquired Stanfordville Machine & Manufacturing, a Poughkeepsie, N.Y.-based machined components and assemblies supplier. Financial terms were not disclosed.
- Talent Group, backed by Osceola Capital, acquired Queen Consulting Group, a Glastonbury, Conn.-based IT staffing and consulting company. Financial terms were not disclosed.
- WilsonHCG, backed by 3i Group, acquired Personify, a Raleigh, N.C.-based recruitment process outsourcing provider. Financial terms were not disclosed.
OTHER
- Catalis Group acquired Secret 6, a Madrid and Manila-based game development and art studio. Financial terms were not disclosed.
- Habyt, a Berlin-based co-living operator in Europe and Asia, and Common, a New York-based co-living operator in North America, merged to form a new company. Financial terms were not disclosed.
- NetSPI acquired nVisium, a Falls Church, Va.-based security testing company. Financial terms were not disclosed.
- OneDigital acquired Bradley & Bradley Associates, a Philadelphia-based insurance brokerage firm. Financial terms were not disclosed.
- Procter & Gamble agreed to acquire Mielle Organics, a Merrillville, Ind.-based hair beauty company. Financial terms were not disclosed.
IPOS
- Lottomatica, an Italian-based gambling company, is weighing an initial public offering in Milan this year that could raise about $1 billion, according to Bloomberg. Apollo Global Management backs the company.
- Agora Digital Holdings, a Charleston, S.C.-based Bitcoin miner, withdrew its plans for an initial public offering.
FUNDS + FUNDS OF FUNDS
- TSG Consumer Partners, a Larkspur, Calif.-based private equity firm, raised $6 billion for its 9th fund focused on consumer companies with revenues between approximately $100 million and $1 billion.
PEOPLE
- AE Industrial Partners, a Boca Raton, Fla.-based private equity firm, hired Dev Rudra as a vice president in AEI’s portfolio strategy and optimization group. Formerly, he was with GE Aviation.
- Berkshire Partners, a Boston-based investment firm, promoted Candice Corvetti, Ted Rainaud, and Drew Walker as managing directors.
- First Reserve, a Houston and Stamford, Conn.-based private equity firm, promoted Paul Steen to managing director and Carolina Sierra to director.
- Lead Edge Capital, a New York and Santa Barbara, Calif.-based investment firm, promoted Emila Damjanovic and Chris Pohl to partner.
- Quilvest Capital Partners, a Paris-based alternative investment firm, hired Sanjay Kohli global head of investor solutions and capital raising and Philip Marchal as head of North American investor solutions and capital raising. Formerly, Kohli was with Investcorp and Marchal was with Probitas Partners.
- Ridge Ventures, a San Francisco-based venture capital firm, hired David F. Anderson as partner. Formerly, he was with the Texas Treasury Safekeeping Trust Company.
This is the web version of Term Sheet, a daily newsletter on the biggest deals and dealmakers. Sign up to get it delivered free to your inbox.
