To address these concerns, Microsoft is developing its own smaller models, like Phi-4, and considering customizing other open-weight models to enhance Copilot 365's efficiency. This move allows Microsoft to reduce dependency on OpenAI while still benefiting from its investment in the startup. By building in-house models, Microsoft hedges its bets in the evolving AI landscape, similar to how various search engines were eventually overshadowed by Google. This strategy positions Microsoft to adapt to potential shifts in AI technology dominance.
Key takeaways:
- Microsoft is considering adding more AI models to its 365 Copilot product beyond those developed by OpenAI, due to concerns about cost and speed.
- There is dissatisfaction among Microsoft employees and customers regarding the performance and value of 365 Copilot, with some describing it as "terrible" and "gimmicky."
- Microsoft is developing its own in-house AI models, such as Phi-4, to potentially reduce reliance on OpenAI and improve the efficiency of 365 Copilot.
- Despite its investment in OpenAI, Microsoft is hedging its bets by developing its own AI technology, preparing for potential shifts in the AI landscape.