Deepwater Asset Management‘s managing partner, Gene Munster has expressed concerns about Microsoft Corporation’s MSFT future in the field of AI as it continues to rely heavily on ChatGPT-parent OpenAI.
What Happened: During an appearance on CNBC’s Closing Bell on Tuesday, Munster said that the Satya Nadella-led tech giant’s Build conference was “underwhelming.” He went on to add that the conference did not unveil anything new that had not been previously disclosed by OpenAI.
“It reminds me that Microsoft’s future is in the hands of OpenAI,” Munster said.
He also highlighted the strong relationship between Microsoft and OpenAI but expressed concerns about Microsoft’s lack of complete control over its AI destiny, especially in comparison to companies like Alphabet Inc.’s Google and Meta Platforms.
“The reality is they are two different companies,” Munster said, referring to OpenAI and Microsoft. “What Microsoft brought originally to OpenAI was a lot of money and separately distribution.”
He said as Sam Altman’s company continues to explore its options, like they are reportedly doing with Apple Inc., it is “concerning” that “Microsoft really isn’t in control of that destiny at the end of the day.”
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Why It Matters: On the same day, at the recent JPMorgan TMC conference, Microsoft’s CVP of Cloud & AI Commercial Marketing, Alysa Taylor, shared insights into the company’s evolving AI strategy and cloud initiatives, highlighting Microsoft’s commitment to AI across its entire cloud stack.
Meanwhile, at the Build developer conference, Microsoft introduced new AI-powered features, including a new iteration of its small language models, Phi-3-vision, which focuses on visual reasoning. The company also launched Team Copilot, an AI assistant designed to enhance workplace collaboration, as part of its broader strategy to integrate AI across its product line.
As of now, Microsoft stands as the largest single investor in OpenAI, having invested more than $13 billion into the organization. It was previously reported, that the investment decision by the Nadella-led company was driven by concerns about falling behind Google in terms of AI capabilities,
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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