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- 🤖 How Microsoft Is Trying to Steer Away From OpenAI
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Microsoft and OpenAI — it seems like a match made in heaven. But now, Microsoft is trying to steer away from the partnership… What’s wrong?
How Microsoft Is Trying to Steer Away From OpenAI
Last year, Microsoft’s ties with OpenAI gave the company new life. It put the company at the forefront of artificial intelligence. But now, the company is trying to steer away from this partnership and lessen its dependence on the AI giant.
Reports from The Information shed light on Microsoft's strategy to reduce reliance on OpenAI. The driving force behind this decision? The soaring expenses associated with running cutting-edge AI models.
According to sources within Microsoft, an executive overseeing a team of 1,500 researchers urged them to develop an in-house conversational AI. The objective? To create LLMs that are not only cost-effective but also more compact than those offered by OpenAI. Even if this means sacrificing a bit of performance, Microsoft is keen on forging ahead.
Already, product teams are hard at work, integrating the in-house AI programs into products like Bing Chat. This move signifies Microsoft's clear intention to chart a new course, breaking free from their reliance on OpenAI.
Microsoft's association with OpenAI has been far from discreet. In 2019, the tech powerhouse invested a hefty $1 billion into ChatGPT's creator. Following the chatbot's release, an additional $10 billion was earmarked for OpenAI. The fruits of this partnership have found their way into Microsoft's flagship products, including the widely used search engine, Bing.
Microsoft's leap into AI extends beyond partnerships. A new chapter unfolds with the opening of an AI Co-Innovation Lab in San Francisco. Located at 555 California St., this hub is poised to enhance the integration of AI into the workings of local startups and businesses.
In simpler terms, the lab acts as a conduit for companies, big or small, to leverage Microsoft's resources and tap into their AI expertise. It's a stepping stone for businesses to launch AI-based products with the guidance of Microsoft's seasoned staff, while also showcasing the tech giant's cloud services and software. And here's the kicker: access to this lab is absolutely free for businesses utilizing Microsoft's Azure platform.
According to a report from the Brookings Institution, San Francisco houses 20 of the best-funded AI companies in the U.S., a testament to its unparalleled influence in the industry. President Joe Biden's choice of San Francisco for a significant executive order announcement further cements the city's pivotal role in shaping the future of AI.
OpenAI’s journey in AI has been very successful, so far. Reports suggest that the company is exploring a secondary share offering that could triple its overall value. The tech group is now poised for valuation between $80 billion and $90 billion, a meteoric rise from its earlier valuation of around $30 billion.
Microsoft's strategic shift away from OpenAI signals a turning point in the dynamics of AI partnerships. As the tech giant blazes a new trail, it remains to be seen how this move will shape the future of AI on a global scale.
Smart move by Microsoft? |
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Source: Pulp Science Fiction Book Cover
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