Microsoft is reportedly working on developing artificial intelligence (AI) at a lower cost while maintaining the same quality as the models of OpenAI, a company with which it has partnered and in which it has invested.
The company aims to reduce costs associated with integrating OpenAI’s technology by creating their own AI software, Seeking Alpha reported Tuesday (Sept. 26), citing an article by The Information based on information from unnamed sources. This move allows Microsoft to have greater control over the development and deployment of AI in its products.
Microsoft did not immediately reply to PYMNTS’ request for comment.
Peter Lee, corporate vice president and head of Microsoft Research, is leading a team of approximately 1,500 researchers in the creation of conversational AI that is smaller in size and more cost-effective to operate, according to the report.
The in-house AI software is intended for use in Microsoft’s own products, including the Bing search chatbot, the report said. Currently, the Bing chatbot is utilizing the in-house models for some queries, while OpenAI’s models handle more complex inquiries.
Microsoft is among the tech giants that have been both partnering with and investing in today’s leading-edge AI startups in order to provide them with the computing power and cash necessary to power and train their foundational models.
The AI business is increasingly pricey and competitive, with some estimating that Microsoft’s Bing AI chatbot, which is powered by an OpenAI large language model (LLM), needs at least $4 billion worth of infrastructure just to do its job.
The report of the work on a cheaper AI comes five days after Microsoft announced that it was beginning the rollout of its AI-powered assistant, Microsoft Copilot, which is designed to transform how users interact with technology.
Microsoft Copilot will be added to Windows 11, Bing, Edge and Microsoft 365 Copilot.
OpenAI, which is backed by Microsoft and has become a standout in the generative AI sector with its ChatGPT chatbot, is reportedly on the road to reaching $1 billion in yearly revenue. The firm is taking in roughly $80 million in revenue per month, Bloomberg News reported Aug. 29, citing an unnamed source.
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