Microsoft CEO says “It wouldn’t matter if OpenAI disappeared tomorrow. We have the data, IP rights, and all the capability.”

Satya Nadella says Microsoft can run its AI projects even if OpenAI isn’t in the picture.

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Microsoft is placing all its bets on AI, especially after plunging amulti-billion dollar investment into OpenAI. And it seems to be paying off. Microsoft recently subdued Apple asthe world’s most valuable companyafter hitting $3 trillion in market capitalization, withmarket analysts attributing this success to its early investment and adoption of generative AIacross its products and services.

Genesis: OpenAI’s weekend-long fiasco

While everything might seem great on paper, Microsoft insiders recently complained about the complicated relationship the tech giant shares with OpenAI. Some indicated it’san overnight “glorified IT department for the hot startup.“It comes on top of last year’s OpenAI fiasco that led toCEO Sam Altman’s firing and rehiringby the board of directors within a fortnight.

The insiders added that the multi-billion dollar partnership has negatively impacted Microsoft’s AI department, which specializes in AI advances and development. Microsoft is reportedly more focused on its projects withOpenAI, which, according to a top executive who left the company because of the same issue, has contributed to the addition of more tombstones to the “Microsoft Graveyard,” including Azure Cognitive Search, Azure AI Bot Service, and Kinect DK.

Since the bizzare events that led to Altman’s firing and rehiring, it’s like OpenAI opened a Pandora’s box and can’t seem to steer clear of problems that have been riddling it in the recent past. During the whole fiasco, Microsoft was relatively quiet, but rumors looming the air at the time suggested that the tech giant was ready to absorb any OpenAI staffers leaving the startup due to the issue.

In a letter drafted to the board of directors, the staffers gave an ultimatum requesting for Altman’s immediate reinstatement as CEO, further stating that “OpenAI is nothing without its people.” Failure to adhere to this request would have led to hundreds of employees walking out of OpenAI’s doors.

At the time,Microsoft had already set up an AI departmentat its LinkedIn office in San Fransico to absorb the OpenAI staffers.Sam Altmanand Greg Brockman were to sit at the helm and run the operations for the entire unit. But Microsoft recently announced an internal reorg placing products like Microsoft Edge, Bing, and Microsoft Copilot anda new Microsoft AI divisionwhich will be ran by Deep Mind co-founder, Mustafa Suleyman.

OpenAI under fire for abandoning its founding agreement and mission

When OpenAI was founded, its mission and vision were to ensure that generative AI advances and developments were easily accessible to everyone for free. In 2015, OpenAI reached out to Elon Musk with the same idea, but the tech startup has seemingly veered off this mission. This has consequently ledMusk to file a lawsuit against OpenAI and CEO Sam Altmanfor “stark betrayal of the founding agreement” and opting to go the for-profit way.

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He further criticized Microsoft and OpenAI’s relationship, indicating:

“In reality, however, OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft. Under its new board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity.”

Musk hopes the court will rule in favor and compel OpenAI to revert to its original mission and vision. But where would this leave Microsoft, which holds a 49% stake in the earnings of OpenAI’s for-profit arm?

We were very confident in our own ability. We have all the IP rights and all the capability. I mean, look, if tomorrow OpenAI disappeared, I don’t want any customer of ours to be worried about it, quite honestly, because we have all of the rights to continue the innovation, not just to serve the products. But we can go and just do what we were doing in partnership, ourselves, and so we have the people, we have the compute, we have the data, we have everything.

Microsoft CEOSatya Nadellashared the sentiments highlighted above last year after being blindsided by Sam Altman’s firing. This presents a form of assurance and dominance in theAI landscape. It also potentially asserts Microsoft’s continued investment in the technology even if it’s forced to sever ties with OpenAI.

Admittedly,Microsoft CopilotandChatGPThave equally experienced several issues over the past few months, including inaccuracy, with some users blatantly indicatingthe chatbots have gotten dumber, andsome don’t even find these tools useful. While these are major concerns, Elon Musk sayswe’re on the verge of the biggest technology revolution with AI, but there won’t be enough power by 2025.

Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You’ll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.