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Microsoft warns it may ‘throttle’ its generative AI services for ‘excessive’ users

Nov 02, 2023 - theregister.com
Microsoft has updated its terms and conditions to warn that "excessive" users of its generative AI services could have their access restricted. The new clause, titled "Capacity Limitations", does not define "excessive use" or detail the duration and nature of the "temporary" restriction. The move suggests potential bottlenecks in Microsoft's AI architectures that could degrade performance for users. The company has previously warned investors that scaling its AI infrastructure would be costly.

Other AI providers, such as OpenAI, already impose usage restrictions to ensure fair access and prevent slowdowns. OpenAI also limits access to its free tier, charging standard fees or stopping access if it believes the free tier is not being used in good faith. Microsoft has yet to explain the undefined terms in its new clause.

Key takeaways:

  • Microsoft has updated its terms and conditions to include a warning that "excessive" users of its generative AI services may have their access restricted, though it does not define what constitutes "excessive use".
  • The change suggests potential bottlenecks in Microsoft's AI architectures that could degrade performance for users, possibly deterring future use of Microsoft's AI.
  • The move could be a cost-saving measure for Microsoft, as scaling its AI infrastructure is expensive, with the company revealing that its Q1 2024 capital expenditures reached $11.2 billion, partly due to investments in AI infrastructure.
  • Other AI providers, such as OpenAI and Midjourney, already impose some usage restrictions to ensure fair access and prevent quality decay or interruptions to other customers.
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