Microsoft forms advanced AI team dedicated to developing OpenAI-like models but at a smaller and cheaper scale
Microsoft takes on OpenAI with smaller and cheaper AI models.
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What you need to know
UPDATE on 25/1/2023:The GenAI team will report directly to Microsoft’s CTO, Kevin Scott. It’s also been pointed out that the new GenAI team isn’t part of the Azure team, as an earlier version of this post indicated.
Undoubtedly, Microsoft is all aboutgenerative AI, given its partnership with OpenAI andheavy investment in the technology. The company has integrated the tech across most of its products and services. And as it now seems, Microsoft is working toward building its small language models.
According toThe Information, Microsoft’s small language models will spot similar capabilities asOpenAI’s ChatGPT. Microsoft has already assembled a team to take on this new challenge, which will report to Microsoft CTO, Kevin Scott. Microsoft’s CVP, Misha Bilenko will lead the GenAI team, alongside top developers who were previously part of the Azure team and were responsible for incorporating OpenAI software into Microsoft products.
The small AI chatbots can generate responses to queries and images. However, compared to top-of-the-line chatbots likeMicrosoft Copilotand ChatGPT, the small language models are less resource-hungry. This means that Microsoft won’t have to invest as much in hardware.
Until now, Microsoft has heavily relied onOpenAIfor most of its advances in the AI landscape. This explainsMicrosoft CEO Satya Nadella’sfrustration afterthe board of directors fired OpenAI’s Sam Altman from the companywithout any heads up despite the company being a major investor.
Several reports indicated thatMicrosoft was ready to absorb Altman and other OpenAI employeeswho’d threatened to leave the company if he wasn’t reinstated. The company had already made elaborate plans for the team to join its Advanced AI department at its LinkedIn offices in San Francisco.
Microsoft in pursuit for its own AI shine
Microsoft AI-related services and products rely heavily on OpenAI for smooth and seamless handling. For instance, Microsoft Copilot runs onOpenAI’s GPT-4 modelandDALL-E 3 technology. The same applies to its recently unveiled paid subscription for theCopilot Pro service. Microsoft promised subscribers they could craft custom GPT bots through the subscription,
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We already know thatrunning a chatbot effectively and efficiently costs up to 700,000 dollars per day. This is not an easy feat, even for a company that wasbriefly ranked as the world’s most valuable company in the world. It makes sense that Microsoft would venture into this space treading carefully with small language models rather than flanging in face-first.
It will be interesting to see the impact this has on Microsoft and OpenAI’s relationship and its impact on the environment. As we speak,AI-powered chatbots consume 1 water bottle for cooling per query, whereas another report suggests thatAI will have consumed enough energy by 2027 to power a small country for a whole year.
Do you think Microsoft will eventually run its AI operations entirely under its ship without OpenAI’s help?Share your thoughts in the comments.
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.
