Recently, Microsoft has stood out as OpenAI’s biggest supporter, injecting a whopping $13 billion into the ChatGPT creator’s technology—a partnership that many have dubbed the ultimate “bromance” in the tech world. Yet, this high-stakes relationship is possibly facing some challenges. Earlier in the year, Microsoft briefly eclipsed Apple and NVIDIA as the most valuable company globally, thanks to its strategic early investment and widespread incorporation of AI. By investing these billions, Microsoft aimed to push forward cutting-edge advancements with OpenAI, gaining premier access to emerging AI models in return.
In fact, a significant portion of Microsoft’s offerings is powered by OpenAI’s innovative technology. But, fresh insights from Reuters suggest a shift might be on the horizon, as Microsoft may be preparing to blend new models into its Microsoft 365 Copilot suite. Notably, these upcoming AI models might operate independently of OpenAI’s framework. The report suggests that Microsoft is reconsidering its dependence on OpenAI’s models, particularly the GPT-4, due to concerns over expense and speed not aligning with enterprise client demands. The tech giant is making moves to slash costs for features like GitHub Copilot, aiming to extend those savings to its users.
This development trails previous indications of tension between Microsoft and OpenAI, triggered by disputes over their exclusive agreement and the massive financial demands on computing power that OpenAI requires. Some OpenAI staff argue that Microsoft’s shortfall in delivering adequate computing power could jeopardize reaching the advanced AGI benchmark, while other ambitious AI labs continue to forge ahead.
Delving into Microsoft’s challenges with the Copilot 365, this tool is seamlessly woven into Microsoft’s suite of productivity software like PowerPoint and Word, designed to streamline data access and enhance user efficiency by summarizing meetings and emails. However, another report sheds light on Microsoft’s hurdles with Copilot’s AI implementations, despite having early access to OpenAI’s advancements. A senior executive at Microsoft even labeled several Copilot AI tools as “gimmicky.” The company reportedly depends heavily on outside vendors to ensure Copilot operates effectively within its ecosystem, like Microsoft 365. Customer feedback revealed that the tool underperforms about 75% of the time, raising questions about the $30 per user monthly fee.
Intriguingly, OpenAI is said to be reconsidering a pivotal clause that ends the Microsoft collaboration upon reaching the AGI milestone. OpenAI’s CEO, Sam Altman, has hinted at achieving AGI sooner than expected, predicting minimal societal disruption. An insider from OpenAI speculated that the company might have already reached AGI following the release of OpenAI 01.
Amid these dynamics, Microsoft seems poised to diversify its AI pursuits, potentially easing off from its reliance on OpenAI. This could be a prudent move, especially in light of rumors about OpenAI facing bankruptcy with losses potentially ballooning to $5 billion in just a year. Microsoft CEO Satya Nadella has suggested that parting ways with OpenAI could be the sensible step once AGI is fully realized.
