Microsoft CEO Satya Nadella may sideline OpenAI for homegrown AI in the future

Microsoft’s reliance on OpenAI for its AI products may be weakening. While the Redmond-based tech giant remains a close partner and a heavy investor in OpenAI, the source suggests a shift towards Microsoft’s AI technology, led by Mustafa Suleyman.

Suleyman, a former DeepMind co-founder and rival of OpenAI’s Sam Altman, has built a new AI team within Microsoft and launched a news organization in March, again, within Microsoft. This team is reportedly developing its own AI model, potentially on par with OpenAI’s tech that currently powers many Microsoft products.

Industry insiders suggest that some future Microsoft AI products could transition from OpenAI’s tech to this new, homegrown model.

The reasons behind this possible shift are unclear. Microsoft could move to gain more control over its AI and reduce dependence on an external partner. Additionally, Suleyman’s team might aim to develop an AI model tailored to Microsoft’s specific needs.

Microsoft’s Satya Nadella has been vocal about his ambitions for AI, aiming to use it to propel Microsoft past its competitors. Building an in-house AI team allows Microsoft more flexibility and maybe even faster innovation.

However, severing ties with OpenAI completely seems unlikely. Even OpenAI released a statement yesterday that Microsoft to reamin their primary cloud parterners after announcing a partership with Oracle.

The most likely scenario is a future where Microsoft utilizes a mix of AI models from both OpenAI and its internal team, depending on the specific product or application.

More here.