Microsoft’s complicated partnership with OpenAI concerns insiders claiming it’s become “a glorified IT department for the hot startup”
Will Microsoft and OpenAI’s multi-billion dollar partnership be beneficial in the long term? Insiders certainly don’t think so, “but it’s a good business strategy.”
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What you need to know
While things may seem fine around the Microsoft-OpenAI partnership, Microsoft Insiders recently lodged complaints citing that its AI strategy is too centered on its partnership with OpenAI (viaBusiness Insider). For some, Microsoft has become an overnight “glorified IT department for the hot startup.”
Business Insider reports that Microsoft’s partnership withOpenAIhas negatively impacted its AI Platform team which is central to homegrown AI advances and development. However, progress on these front has been stunted with Microsoft inclining more toward OpenAI for most (if not all) of its AI advances.
The complicated nature of Microsoft and OpenAI’s relationship contributed to the loss of one of the top executives in the company, who said products like Azure Cognitive Search, Azure AI Bot Service, and Kinect DK are practically dead.
According to the executive:
“The former Azure AI is basically just tech support for OpenAI. Eric Boyd is effectively maintaining the OpenAI service. It’s less of an innovation engine than it once was. Now it’s more IT for OpenAI. The beating heart of innovation is elsewhere.”
But in response, Frank Shaw, a Microsoft spokesman indicated that the products and services still exist, it’s just that they have been either rebranded or bundled up with other products.
While this isn’t a good look forMicrosoft, the source indicated, “It’s not very innovative, but it’s a good business strategy.” Adding to the complicated relationship between Microsoft and OpenAI, the source disclosed that Microsoft employees work closely with OpenAI staffers to the extent that both have clearance to visit each other’s offices and more.
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When did the rain start beating the Microsoft-OpenAI partnership?
Microsoft has undoubtedly placed all its bets ongenerative AI, especially after plunging amulti-billion dollar investment in the technology, further extending its partnership with OpenAI. Since then, the tech giant has integrated AI across most of its products and services.
It’s no secret that OpenAI and Microsoft have a rather complicated relationship. In hindsight, it all started when OpenAI’s board of directors spontaneouslydecided to fire CEO Sam Altman, only toreinstate him back to his positiona week later.
The reasoning behind this decision remains unclear, but it has been pointed out that Altman’s leadership skills and lack of communication were among the main issues. The decision to fire Altman was received with a lot of backlash from OpenAI staffers who, in solidarity with their CEO, threatened to quit if he wasn’t given back his job, further citing that “OpenAI is nothing without its people.”
Interestingly, Microsoft remained on the sidelines during the whole OpenAI fiasco. However, the tech giant was reportedlygearing up to absorb hundreds of OpenAI staffers into its advanced AI research teamat its LinkedIn offices in San Francisco. The new department was set to run with Sam Altman and OpenAI co-founder Greg Brockman leading its operations.
Elon Musk recently moved to court andfiled a lawsuit against OpenAIfor veering off its initial mission and vision while starting up — to make AI readily accessible for everyone without making any profit from these ventures. Musk has openly shared his strong opinion about AI, citing that we’re on the verge of the biggest technology revolution with AI, butthere won’t be enough electricity 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.
