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Microsoft says OpenAI is now a competitor in AI and search

Aug 02, 2024 - news.bensbites.com
Microsoft has added OpenAI, an artificial intelligence startup, to its list of competitors, despite being its biggest investor and long-term partner. The tech giant, which uses OpenAI's AI models in its products and serves as its exclusive cloud provider, identified OpenAI as a competitor in AI offerings, search, and news advertising. This comes after OpenAI announced a prototype of a search engine called SearchGPT.

Despite the new competitive dynamic, an OpenAI spokesperson stated that the partnership between the two companies remains unchanged and was established with the understanding that they would compete. The past year has seen some drama between the two, including Microsoft CEO Satya Nadella reportedly not being briefed before OpenAI's board briefly ousted CEO Sam Altman. Microsoft was later given a non-voting board seat by OpenAI, which it relinquished earlier this month.

Key takeaways:

  • Microsoft has added OpenAI to its list of competitors, despite having a long-term partnership with the AI startup and being its biggest investor.
  • OpenAI, known for creating the ChatGPT chatbot, has been identified as a competitor in AI offerings and in search and news advertising by Microsoft.
  • OpenAI recently announced a prototype of a search engine called SearchGPT, which could be a potential competition to Microsoft's AI services.
  • Despite the competition, an OpenAI spokesperson stated that the relationship between the two companies remains unchanged and their partnership was established with the understanding that they would compete.
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