OpenAI's Biggest Investor Is Now Listed as a Rival — and One of Its Main Competitors

Aug 01, 2024 11:20 PM - 4 months ago 88553

Microsoft's Tuesday annual report slipped successful a caller item — it concisely mentioned OpenAI arsenic a competitor successful AI, search, and news advertising, contempt Microsoft's $13 billion, years-long committedness to nan ChatGPT maker. Microsoft is OpenAI's largest investor.

Microsoft's previous yearly report only mentioned OpenAI arsenic a partner, not a competitor. The 2023 study stated that OpenAI exclusively uses Microsoft's unreality services to powerfulness ChatGPT; Microsoft, successful turn, uses nan company's AI models successful its products.

Though Microsoft reiterated nan business successful nan 2024 report, it added that OpenAI is simply a rival too.

"Our AI offerings compete pinch AI products from hyperscalers specified arsenic Amazon and Google, arsenic good arsenic products from different emerging competitors, including Anthropic, OpenAI, Meta, and different unfastened root offerings," nan 2024 study reads.

Microsoft's hunt and news advertizing business besides "competes pinch Google, OpenAI, and a wide array of websites," per nan report.

Related: Microsoft AI CEO Says Almost All Content connected nan Internet Is Fair Game for AI Training

Microsoft's 2022 yearly report only mentioned OpenAI once, arsenic portion of Microsoft's Azure OpenAI Service.


Microsoft CTO Kevin Scott, right, and OpenAI CEO Sam Altman, left. Photographer: Chona Kasinger/Bloomberg via Getty Images

In July, Microsoft gave up its OpenAI committee seat amid antitrust scrutiny. The U.S. Federal Trade Commission launched an investigation into nan Microsoft-OpenAI business a period prior, focusing connected imaginable antitrust and information postulation issues.

Microsoft's OpenAI business took halfway shape successful November during a activity conflict that spanned 5 days. OpenAI CEO Sam Altman was removed from his position and decided to join Microsoft to lead a new precocious AI investigation team.

"I stay assured successful Sam and his activity and capability, and that's why we want to invited him to Microsoft," Microsoft CEO Satya Nadella told Bloomberg astatine nan time.

Altman yet returned to lead OpenAI aft 95% of nan institution threatened to discontinue unless he came back.

Related: Former OpenAI Board Member Reveals Why She Had CEO Sam Altman Fired

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