Microsoft outsourcing AI R&D to OpenAI could make them a consultant, which could benefit Google

Microsoft’s decision to outsource its AI development to OpenAI could see it become a mere consultant in the field, according to Okta CEO Todd McKinnon. This could give Google a huge advantage in the race for AI dominance.

McKinnon believes that Microsoft’s heavy reliance on OpenAI, firm in which it has invested billions, could weaken its own AI research and development (R&D). He talked about the fact that Google’s DeepMind research unit pioneered key AI technologies like transformers.

What are transformers? Transformers are deep-learning models that learn context and, thus, meaning by tracking relationships in sequential data, such as words.

“This all came from Google, with DeepMind and the research. I me”,” the breakthrough was the research from Google, the transformers which are the algorithm that all these LLMs are using to make these big advancements.”

Microsoft’s integration of OpenAI’s tech into its products, such as Copilot and generative AI-powered PCs, has led McKinnon to believe the company is on track to become an AI consulting firm.

While Microsoft holds a leadership position in foundational AI models due to its partnership with OpenAI, Google’s efforts have been plagued by public blunders. These include the Bard chatbot fiasco and the Gemini image generator.

McKinnon pointed out that AI development is heavily reliant on massive financial backing from tech giants, unlike old times that stemmed from organic investments.

“The only reason OpenAI can get it is working is that the great R&D that they needed — $10 billion from Microsoft, to run the model — that waswwaswasn’tkeisruptive thing, that was a $10 billion investment.

More here.