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An OpenAI backup plan? Microsoft shows off smaller language models

Dec 13, 2023 - businessinsider.com
Microsoft is developing its own AI models as a potential alternative to OpenAI's technology, following the recent controversy surrounding OpenAI's CEO. The tech giant has unveiled Phi-2, a small but powerful AI model, and Orca 2, both of which are designed to perform at the same level as larger models. Despite their smaller size, Microsoft claims these models can match or outperform larger models in areas such as common-sense reasoning, language understanding, and math and code.

This move comes after Microsoft's significant investment in OpenAI and the integration of OpenAI's technology into its products. However, the company's recent developments suggest a shift towards independence from OpenAI. While Microsoft's new models do not directly replicate the capabilities of OpenAI's GPT-4, they demonstrate that the company's AI strategy extends beyond its partnership with OpenAI.

Key takeaways:

  • Microsoft has unveiled its own small-scale AI models, Phi-2 and Orca 2, which are said to perform as well as or better than larger models, including OpenAI's ChatGPT.
  • Phi-2 is a smaller large language model with 2.7 billion parameters, trained in 14 days, and is cheaper to run due to its reduced need for intensive computing power.
  • Orca 2 is designed to enhance reasoning abilities in smaller AI models, with performance levels similar to or better than models 5-10 times larger.
  • These developments suggest that Microsoft is not solely reliant on OpenAI for AI technology, despite its $10 billion investment into the company.
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