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Microsoft’s OpenAI investment was triggered by Google fears, emails reveal

May 02, 2024 - theverge.com
Microsoft invested $1 billion in OpenAI in 2019 due to concerns about Google's advanced AI efforts, according to an internal email between Microsoft CTO Kevin Scott, CEO Satya Nadella, and co-founder Bill Gates. The email, released as part of the ongoing US Justice Department antitrust case against Google, reveals that Microsoft was "multiple years behind" in machine learning scale, with Scott noting that it took six months for Microsoft engineers to replicate Google’s BERT language model due to inadequate infrastructure.

The email also reveals that Microsoft was impressed by Google’s early use of AI and its competitive advantage, particularly in natural language processing models. The investment in OpenAI, which now totals over $13 billion, has helped Microsoft integrate AI models into its Office apps, Bing search engine, Edge, and Windows operating system, positioning the company as a leader in AI. CEO Satya Nadella has indicated that AI and security will be Microsoft's primary focus areas in 2024 and beyond.

Key takeaways:

  • Microsoft invested $1 billion in OpenAI in 2019 due to concerns about Google's advanced AI efforts, as revealed in an internal email between Microsoft CTO Kevin Scott, CEO Satya Nadella, and co-founder Bill Gates.
  • The email, released as part of the US Justice Department antitrust case against Google, detailed how Microsoft was lagging behind in terms of machine learning scale and struggled to replicate Google’s BERT language model.
  • Microsoft has since invested over $13 billion in OpenAI, integrating its models into various Microsoft products, which has helped position the company as a leader in AI.
  • CEO Satya Nadella has made AI and security his top two areas of focus for Microsoft in 2024 and beyond, indicating that the company's AI development is set to continue.
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