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How Microsoft is Trying to Lessen Its Addiction to OpenAI as AI Costs Soar

Sep 26, 2023 - theinformation.com
Microsoft is developing a backup plan as the costs of running advanced AI models from OpenAI, a startup it funded, increase. Peter Lee, who oversees Microsoft’s researchers, has directed many of them to create a conversational AI that may not perform as well as OpenAI’s but is smaller and less expensive to operate.

Microsoft's product teams are already incorporating this Microsoft-made AI software, powered by large language models, into existing products. An example is a chatbot within Bing search, similar to OpenAI’s ChatGPT.

Key takeaways:

  • Microsoft's artificial intelligence efforts are largely dependent on OpenAI, a startup it funded for access to its advanced technology.
  • Due to rising costs of running advanced AI models, Microsoft is developing a backup plan.
  • Peter Lee, who oversees Microsoft’s 1,500 researchers, has directed many of them to develop a more cost-effective conversational AI that may not perform as well as OpenAI’s but is smaller and cheaper to operate.
  • Microsoft’s product teams are already working on incorporating this Microsoft-made AI software, powered by large language models, into existing products like a chatbot within Bing search.
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