Microsoft Corporation (NASDAQ:MSFT) reportedly plans to reduce its dependence on ChatGPT-maker Open AI.
What happened: Microsoft has been working to integrate internal and external artificial intelligence models into its AI product. Microsoft 365 CopilotReuters reported, citing sources familiar with the effort.
This move is a strategic step to diversify from OpenAI’s current underlying technology and reduce costs.
The Satya NadellaThe company-led company is also reducing 365 Copilot’s reliance on OpenAI due to concerns about cost and speed for business users, the report said, citing the sources.
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A Microsoft spokesperson was quoted in the report as saying that OpenAI remains the company’s partner in boundary modeling. “Depending on the product and experience, we integrate different models from OpenAI and Microsoft.”
OpenAI and Microsoft did not immediately respond to Benzinga’s request for comment.
Reportedly, Microsoft 365 Copilot has yet to prove its return on investment for enterprises. The tech giant did not share specific sales data on the number of licenses sold.
Why it’s important: This move mirrors those of other Microsoft business units that have changed the way they use OpenAI models. For example, GitHubacquired by Microsoft in 2018, added models of Anthropic And Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Googling in October as an alternative to OpenAIs GPT-4.
It was previously reported that company insiders were concerned that Microsoft’s AI strategy is heavily dependent on collaboration with OpenAI.
In October, the two companies held talks to decide how Microsoft’s $14 billion investment in OpenAI would be converted into shares in the AI company.
OpenAI plans to remove a clause that limits Microsoft’s access to its most advanced AI models as it achieves artificial general intelligence, according to a report published in December.
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