Microsoft considers OpenAI a competitor now
Technology
Microsoft is also OpenAI’s largest investor, with a reported $13 billion investment.
(Web Desk) - On Tuesday, Microsoft included the artificial intelligence startup OpenAI in its list of competitors in the latest annual report. This list traditionally features major rivals such as Amazon, Apple, Google, and Meta.
Microsoft has an extensive partnership with OpenAI, acting as its sole cloud provider and integrating its AI models into products for both business and consumer use.
Microsoft is also OpenAI’s largest investor, with a reported $13 billion investment. The inclusion of OpenAI on the competitor list suggests increasing overlap in their respective markets.
In the report, Microsoft listed OpenAI, the developer of the ChatGPT chatbot, as a competitor in AI solutions and in search and news advertising. OpenAI recently unveiled a prototype for a new search engine called SearchGPT.
Some companies opt to use OpenAI's models directly, while others access them via Microsoft’s Azure OpenAI Service. For users seeking alternatives to ChatGPT, Microsoft offers the Copilot chatbot through Bing and Windows.
An OpenAI spokesperson confirmed to CNBC that their partnership with Microsoft remains unchanged and was always understood to include competition. The spokesperson stated that Microsoft continues to be a valuable partner.
However, the year has been tumultuous. Microsoft CEO Satya Nadella was reportedly unaware of OpenAI’s board decision to oust CEO Sam Altman in November, though Altman was quickly reinstated. Subsequently, OpenAI offered Microsoft a non-voting board seat, which Microsoft relinquished earlier this month.
In March, Nadella appointed Mustafa Suleyman, a co-founder of DeepMind (an AI research company acquired by Google in 2014) and founder of Inflection AI, as the CEO of a new division called Microsoft AI. Several former Inflection AI employees joined Suleyman in this new role.
Despite these developments, Nadella and Altman maintain a close relationship. Nadella expressed his admiration for Altman’s relentless drive, sharing with The New York Times, “One of the things I love about Sam is every day he’s calling me and saying, ‘I need more, I need more, I need more.’”
