Microsoft’s Tuesday annual report slipped in a brand new element — it briefly talked about OpenAI as a competitor in AI, search, and information promoting, regardless of Microsoft’s $13 billion, years-long dedication to the ChatGPT maker. Microsoft is OpenAI’s largest investor.
Microsoft’s earlier annual report solely talked about OpenAI as a associate, not a competitor. The 2023 report said that OpenAI solely makes use of Microsoft’s cloud companies to energy ChatGPT; Microsoft, in flip, makes use of the corporate’s AI fashions in its merchandise.
Although Microsoft reiterated the partnership within the 2024 report, it added that OpenAI is a rival too.
“Our AI choices compete with AI merchandise from hyperscalers comparable to Amazon and Google, in addition to merchandise from different rising opponents, together with Anthropic, OpenAI, Meta, and different open supply choices,” the 2024 report reads.
Microsoft’s search and information promoting enterprise additionally “competes with Google, OpenAI, and a wide selection of internet sites,” per the report.
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Microsoft’s 2022 annual report solely talked about OpenAI as soon as, as a part of Microsoft’s Azure OpenAI Service.
Microsoft CTO Kevin Scott, proper, and OpenAI CEO Sam Altman, left. Photographer: Chona Kasinger/Bloomberg by way of Getty Photos
In July, Microsoft gave up its OpenAI board seat amid antitrust scrutiny. The U.S. Federal Commerce Fee launched an investigation into the Microsoft-OpenAI partnership a month prior, specializing in doable antitrust and knowledge assortment points.
Microsoft’s OpenAI partnership took middle stage in November throughout a management battle that spanned 5 days. OpenAI CEO Sam Altman was faraway from his place and determined to affix Microsoft to guide a brand new superior AI analysis workforce.
“I stay assured in Sam and his management and functionality, and that is why we need to welcome him to Microsoft,” Microsoft CEO Satya Nadella instructed Bloomberg on the time.
Altman finally returned to guide OpenAI after 95% of the corporate threatened to stop except he got here again.
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