According to Microsoft, OpenAI is now a competitor in AI and search

MicrosoftThe relationship with OpenAI has officially grow to be more complicated.

On Tuesday, Microsoft added the synthetic intelligence startup to its list of competitors within the current annual report. For years, this list has also included mega-cap firms Amazon, Apple, Google and meta.

Microsoft has a long-term partnership with OpenAI, serving as its exclusive cloud provider and using its AI models in products for business and consumer customers. Microsoft is OpenAI's largest investor, having reportedly invested $13 billion in the corporate.

But the brand new forged suggests that the 2 will get in one another's way.

In the grievance, Microsoft named OpenAI, the developer of the chatbot ChatGPT, as a competitor in AI offerings in addition to search and news promoting. Last week, OpenAI announced a prototype search engine called SearchGPT.

Some firms pay for access to OpenAI models. Others use Microsoft's Azure OpenAI service. For those searching for a substitute for ChatGPT, Microsoft's Chatbot Copilot can be available on the Bing search engine and in Windows operating systems.

An OpenAI spokesperson told CNBC that the connection between the 2 firms has not modified and that their partnership was entered into with the understanding that they might compete with one another. Microsoft stays a superb partner for OpenAI, the spokesperson said.

Nevertheless, it was a yr stuffed with drama.

Microsoft CEO Satya Nadella According to reports was not informed before OpenAI's board ousted CEO Sam Altman in November. After Altman was quickly reinstated, OpenAI gave Microsoft a non-voting board seat. Microsoft gave up the position earlier this month.

In March, Nadella brought on board Mustafa Suleyman, a co-founder of DeepMind, an AI research company that existed before OpenAI and was acquired by Google in 2014. Suleyman, who co-founded and led the startup Inflection AI, was named CEO of a brand new unit called Microsoft AI, and a number of other Inflection employees joined him.

Nadella stays near Altman.

“One of the things I love about Sam is that he calls me every day and says, 'I need more, I need more, I need more,'” Nadella told The New York Times in a recent interview.

REGARD: OpenAI pronounces a search engine called SearchGPT

OpenAI announces a search engine called SearchGPT

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