Microsoft pursues smaller, cheaper AI

According to a recent report by The Information, Microsoft, who became the 2nd company to hit the $3T mark, is reportedly investing in the development of more efficient and cost-effective artificial intelligence solutions. This initiative involves forming a new team, Gen AI, focused on creating conversational AI models with lower computational requirements than existing technology.

The team, comprised of researchers transferred from Microsoft’s research group, is expected to be led by Misha Bilenko and potentially integrated into the Azure cloud unit. This move suggests Microsoft’s aim to make these AI solutions readily available on its cloud platform.

Previously, Microsoft relied heavily on OpenAI for its AI advancements, utilizing technologies like the GPT-4 language model in Bing Chat and the Dall-E 3 image generator in Bing AI Image Creator. However, the formation of Gen AI indicates a potential shift towards greater independence in AI development.

Microsoft’s commitment to AI integration is further evidenced by the recent launch of Copilot Pro, a $20 monthly subscription offering access to AI-powered Office features and advanced language models like OpenAI’s GPT-4 Turbo. Additionally, Copilot for Microsoft 365 caters to enterprise clients, assisting businesses in harnessing AI capabilities.

Microsoft has released Copilot mobile apps for Android and iOS to reach a wider audience. This expands the existing offering of a free, basic chatbot version and the paid Copilot Pro subscription, providing users various options based on their needs and budget.