Microsoft Invested Nearly $14 Billion In OpenAI But Now Its Reducing Its Dependence On The ChatGPT-Parent: Report

Microsoft Corporation MSFT is reportedly planning to reduce its dependence on ChatGPT-maker OpenAI.

What Happened: Microsoft has been working on integrating internal and third-party artificial intelligence models into its AI product, Microsoft 365 Copilot, reported Reuters, citing sources familiar with the effort.

This move is a strategic step to diversify from the current underlying technology of OpenAI and reduce costs.

The Satya Nadella-led company is also decreasing 365 Copilot’s dependence on OpenAI due to concerns about cost and speed for enterprise users, the report noted, citing the sources.

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A Microsoft spokesperson was quoted in the report saying that OpenAI continues to be the company’s partner on frontier models. “We incorporate various models from OpenAI and Microsoft depending on the product and experience.”

OpenAI and Microsoft did not immediately respond to Benzinga's request for comments.

Microsoft 365 Copilot is reportedly yet to prove its return on investment to enterprises. The tech giant has not shared specific sales data on the number of licenses sold.

Why It Matters: This move mirrors those of other Microsoft business units which have altered the ways they use OpenAI models. For instance, GitHub, acquired by Microsoft in 2018, added models from Anthropic and Alphabet Inc.'s GOOG GOOGL Google in October as alternatives to OpenAI's GPT-4.

Previously it was reported that company insiders were concerned about Microsoft’s AI strategy being heavily reliant on its partnership with OpenAI.

In October, the two companies engaged in talks to decide how Microsoft's $14 billion investment in OpenAI would be converted into equity in the AI firm.

OpenAI plans to remove a clause that restricts Microsoft’s access to its most advanced AI models upon achieving artificial general intelligence, according to a report published in December.

Photo via Shutterstock

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