In a move that is perhaps less surprising than you might think, Microsoft seems to be readying up to dump OpenAI.
Right now, Microsoft’s entire AI operation is powered by ChatGPT and other OpenAI models, including DALLE 3. Microsoft has shown impressive growth and demand for its enterprise-grade AI tools, including things like Microsoft 365 Copilot and Github Copilot, even if its consumer-level efforts have largely fallen flat.
Microsoft and OpenAI are long-rumored to have endured something of a tumultuous relationship. Microsoft was a very early investor in OpenAI, and won itself some incredibly lucrative contracts as a result, including some forms of exclusivity over OpenAI’s models. Indeed, Microsoft still holds 27% of the new “for profit” arm of OpenAI, and maintains IP rights for OpenAI’s models until 2032.
However, Microsoft and OpenAI re-worked aspects of the deal last October, freeing up OpenAI to seek compute from competing cloud firms, and allowing…