Microsoft is plotting a future without OpenAI
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Microsoft is plotting a future without OpenAI
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Re: Microsoft is plotting a future without OpenAI
#2Original story: Microsoft’s AI Guru Wants Independence From OpenAI. That’s Easier Said Than Done, https://www.theinformation.com/articles/microsofts-ai-guru-w...
Re: Microsoft is plotting a future without OpenAI
#3For cloud providers it makes sense to be model agnostic.
While we still live in a datacenter driven world, models will become more efficient and move down the value chain to consumer devices.
For Enterprise, these companies will need to regulate model risk and having models fine-tuned on proprietary data at scale will be an important competitive differentiator.
Re: Microsoft is plotting a future without OpenAI
#4Thematically investing billions into startup AI frontier models makes sense if you believe in first-to-AGI likely worth a trillion dollars +
Investing in second/third place likely valuable at similar scales too
But outside of that MSFTs move indicates that frontier models most valuable current use case - enterprise-level API users - are likely to be significantly commoditized
And likely majority of proceeds will be captured by (a) those with integrated product distribution - MSFT in this case and (b) data center partners for inference and query support
Re: Microsoft is plotting a future without OpenAI
#5I think they both want a future without each other. OpenAI will eventually want to vertically integrate up towards applications (Microsoft's space) and Microsoft wants to do the opposite in order to have more control over what is prioritized, control costs, etc.
Re: Microsoft is plotting a future without OpenAI
#6Despite the actual performance and product implementation, this suggests to me Apple's approach was more strategic.
That is, integrating use of their own model, amplifying capability via OpenAI queries.
Again, this is not to drum up the actual quality of the product releases so far--they haven't been good--but the foundation of "we'll try to rely on our own models when we can" was the right place to start from.
Re: Microsoft is plotting a future without OpenAI
#7I think they have realized that even if OpenAI is first, it won't last long so really its just compute at scale, which is something they already do themselves.
Re: Microsoft is plotting a future without OpenAI
#8Thematically investing billions into startup AI frontier models makes sense if you believe in first-to-AGI likely worth a trillion dollars + Investing in second/third place likely valuable at similar scales too But outside of that MSFTs move indicates that frontier models most valuable current use case - enterprise-level API users - are likely to be significantly commoditized And likely majority of proceeds will be c…
First to AGI for the big companies? Or for the masses?
Computationally, some might have access to it earlier before it’s scalable.
Re: Microsoft is plotting a future without OpenAI
#9Surprising how Sam Altman's firing as CEO of OpenAI and moving to Microsoft wasn't mentioned in this article.
Re: Microsoft is plotting a future without OpenAI
#10Thematically investing billions into startup AI frontier models makes sense if you believe in first-to-AGI likely worth a trillion dollars + Investing in second/third place likely valuable at similar scales too But outside of that MSFTs move indicates that frontier models most valuable current use case - enterprise-level API users - are likely to be significantly commoditized And likely majority of proceeds will be c…
First to AGI for the big companies? Or for the masses? Computationally, some might have access to it earlier before it’s scalable.
Profit from say 3 years of enterprise AGI exclusivity is unlikely to be worth the investment.
It’s moats that capture most value not short term profits.