PayPal on Tuesday became the first payments platform to embed its digital wallet into OpenAI's ChatGPT.
Shares of the San Jose, California-based company climbed in Tuesday morning trading after the company announced that it is going to adopt the Agentic Commerce Protocol (ACP) to expand payments and commerce in ChatGPT, allowing ChatGPT users to be able to check out instantly using PayPal.
PayPal said it will also support payments processing for merchants leveraging OpenAI Instant Checkout. PayPal will also connect its global merchant network to OpenAI, which it says will create a platform for tens of millions of small businesses and the largest brands in the world to sell within ChatGPT.
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Through this integration, shoppers will be able to pay for things with their bank account, PayPal balance or cards. They also get PayPal’s built-in protections for both buyers and sellers, plus tools to track orders and resolve any problems after purchase.
It's a way for PayPal to tap into a massive user base of people who currently use OpenAI's ChatGPT.
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"Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop," PayPal CEO Alex Chriss said.
On the heels of PayPal's announcement, Microsoft said it signed a new definitive agreement with OpenAI, which caused its shares to rise in morning trading.
Under the agreement, Microsoft said it is backing OpenAI’s plan to form a public benefit corporation (PBC), which is a type of company that aims to balance profit with public good, and to restructure its finances.
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After the restructuring, Microsoft said its investment in OpenAI Group PBC will be valued at approximately $135 billion. This means it will give Microsoft around 27% ownership when all shares are considered. Before OpenAI’s latest fundraising rounds, Microsoft’s share was about 32.5%.
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The agreement preserves key elements of the partnership, including that OpenAI remains Microsoft’s main AI model partner and Microsoft retains exclusive rights to OpenAI’s intellectual property. OpenAI will also continue using Microsoft’s Azure as its exclusive cloud provider until Artificial General Intelligence (AGI) is achieved, Microsft said.
