{"id":617533,"date":"2024-04-19T19:09:53","date_gmt":"2024-04-19T16:09:53","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-openai-and-microsoft-reawakened-a-sleeping-software-giant\/"},"modified":"2024-04-19T19:09:53","modified_gmt":"2024-04-19T16:09:53","slug":"how-openai-and-microsoft-reawakened-a-sleeping-software-giant","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-openai-and-microsoft-reawakened-a-sleeping-software-giant\/","title":{"rendered":"#How OpenAI and Microsoft reawakened a sleeping software giant"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a419a15f2664\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a419a15f2664\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-openai-and-microsoft-reawakened-a-sleeping-software-giant\/#An_intergenerational_relationship\" >An intergenerational relationship<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-openai-and-microsoft-reawakened-a-sleeping-software-giant\/#Commercialising_OpenAI\" >Commercialising OpenAI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/how-openai-and-microsoft-reawakened-a-sleeping-software-giant\/#Microsoft_enters_the_LLM_era\" >Microsoft enters the LLM era<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/how-openai-and-microsoft-reawakened-a-sleeping-software-giant\/#AI_risks_and_rewards\" >AI risks and rewards<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/how-openai-and-microsoft-reawakened-a-sleeping-software-giant\/#Embedding_OpenAI_into_Microsoft\" >Embedding OpenAI into Microsoft<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/how-openai-and-microsoft-reawakened-a-sleeping-software-giant\/#The_future_relationship\" >The future relationship<\/a><\/li><\/ul><\/nav><\/div>\n<div id=\"article-main-content\">\n                            <span style=\"font-weight: 400;\">Just a decade ago, the world\u2019s biggest tech beast was a relative minnow. Microsoft had become notorious for dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointing product launches, stagnant innovation, and losing top talent. The\u00a0first true software giant was becoming a big tech dinosaur.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fast forward to 2024 and Microsoft is the planet\u2019s most valuable business. Under the leadership of CEO Satya Nadella, stock has soared by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/quote\/MSFT\/history?period1=1361048400&amp;period2=1487278800&amp;interval=1mo&amp;filter=history&amp;frequency=1mo&amp;guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAFlrLrUjplpez4yAzc5I603Jbxy1ov8kzy-QkWyfUoxe1YtESqsrsLI-hi-tgSWmHCjqm7-hOcz2GQP6rPSw_uRjZqNDSAtcuPSadUhJ6XcNh-N3qx_aCiXCF8BxhD2Z945i-5JA4JIk6NjV-wX0dmqXdSgex7TmvyIcdmHlRDV9\">over 1,000%<\/a> in 10 years. In January, the company reached a $3 trillion market cap \u2014 larger than the whole GDP of France.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the heart of the comeback is artificial intelligence. Microsoft\u00a0has embedded AI\u00a0across the Azure cloud computing platform, the Office productivity suite, and the Bing search engine. After missing out on the mobile and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> booms, the Redmond giant has become a global leader in AI.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A key player in the turnaround was Sophia Velastegui \u2014 one of the star speakers at TNW Conference this June. Velastegui joined Microsoft in 2017 as a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> manager of AI Products and Search. Six months later,\u00a0Business Insider named her one of the most powerful female engineers in tech.<\/span><\/p>\n<div class=\"inarticle-wrapper channel-cta\">\n<div class=\"ica-text\">\n<p class=\"ica-text__title\">TNW Conference 2024- 2for1 offer this week only!<\/p>\n<p>Don&#8217;t miss out on the world-class speakers. Secure your 2for1 tickets before 23 April.<\/p>\n<\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">Back then, Nadella\u2019s plans were just starting to take shape.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c<\/span><span style=\"font-weight: 400;\">Microsoft was not an AI company \u2014 it was a software company.\u00a0But if you talk about Microsoft now, many people will say it\u2019s an AI company,\u201d <\/span><span style=\"font-weight: 400;\">Velastegui, now Chief Product Officer of automotive giant Aptiv, tells TNW.<\/span><span style=\"font-weight: 400;\"> <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cHow did they do that? What are the things they did? They invested in and infused AI into their features and their products \u2014whether it be for software development or Office.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Velastegui played a growing role in that infusion. After a promotion to Chief AI Officer in Business Applications, she became part of the core team exploring Microsoft\u2019s vaunted new investment: OpenAI.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"An_intergenerational_relationship\"><\/span>An intergenerational relationship<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Microsoft has a long history in AI. <\/span><span style=\"font-weight: 400;\">The company\u2019s research unit had explored the field since Bill Gates launched the centre in 1991 \u2014 but the experiments hadn\u2019t spawned popular products. From the reviled Clippy to the jilted Cortana, Microsoft\u2019s AI apps rarely charmed consumers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nadella immediately sought to change that. His first big move after he was appointed CEO in 2014 was a sweeping embrace of chatbots. The shift wasn\u2019t an immediate triumph: an early bot called Tay became a <\/span><span style=\"font-weight: 400;\">Hitler-loving sex pest<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite the controversy, the plans rolled on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAs an industry, we are on the cusp of a new frontier that pairs the power of natural human language with advanced machine intelligence,\u201d Nadella said after Tay\u2019s meltdown.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a company, Microsoft looked beyond its walls for that frontier. The search led the company to OpenAI.<\/span><\/p>\n<figure class=\"post-image post-mediaBleed aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-809704 js-lazy\" alt=\"Satya Nadella in 2014\" width=\"1500\" height=\"842\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153.jpg\" srcset=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153.jpg 1500w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153-220x123.jpg 220w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153-520x291.jpg 520w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153-730x409.jpg 730w\"\/><figcaption><a rel=\"nofollow noopener\" target=\"_blank\" href=\"#\" data-url=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Feditorial.thenextweb.com%2Fdeep-tech%2F2024%2F04%2F19%2Fhow-openai-microsoft-created-ai-giant%2F&amp;via=thenextweb&amp;related=thenextweb&amp;text=Check out this picture on: Nadella has looked to startups for AI innovations. Credit: Microsoft\" data-title=\"Share Nadella has looked to startups for AI innovations. Credit: Microsoft on Twitter\" data-width=\"685\" data-height=\"500\" class=\"post-image-share popitup\" title=\"Share Nadella has looked to startups for AI innovations. Credit: Microsoft on Twitter\"><i class=\"icon icon--inline icon--twitter--dark\"\/><\/a>Nadella has looked to startups for AI innovations. Credit: Microsoft<\/figcaption><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-809704\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153.jpg\" alt=\"Satya Nadella in 2014\" width=\"1500\" height=\"842\" srcset=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153.jpg 1500w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153-220x123.jpg 220w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153-520x291.jpg 520w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2014\/10\/ms_azure_2014_153-730x409.jpg 730w\"\/><\/figure>\n<p><span style=\"font-weight: 400;\">Launched in 2015, OpenAI had a bold\u00a0 mission to build artificial intelligence that would \u201cbenefit humanity as a whole.\u201d But its ambitions were consuming vast resources. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2017, the buzzy startup\u00a0spent an estimated $7.9 million on cloud computing \u2014 a quarter of its functional expenses. That brought the young contender into a collaboration with an ageing tech behemoth: Microsoft.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The software giant announced a partnership with OpenAI the next year. Under the terms of the deal, OpenAI would <span style=\"color: #191919;\">use<\/span> Microsoft\u2019s Azure cloud platform for\u00a0research and development.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By 2019, Microsoft had become the AI lab\u2019s \u201cexclusive\u201d cloud computing provider. Following a fresh $1bn investment in the startup, the Redmond giant<\/span><span style=\"font-weight: 400;\">\u00a0became OpenAI\u2019s preferred partner for commercialisation.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Commercialising_OpenAI\"><\/span>Commercialising OpenAI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Microsoft soon integrated OpenAI large language models (LLMs) \u00a0into Azure cloud services. Customers use the software for various\u00a0app features, from chatbots and content generation to translators and personalised marketing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The service grew rapidly. In the second quarter of this year, Microsoft reported a 50% increase in users of Azure OpenAI over the previous 12 months. Over 53,000 customers now used the service, Nadella <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/synthedia.substack.com\/p\/microsoft-azure-ai-users-base-rose\">said<\/a>, including <\/span><span style=\"font-weight: 400;\">\u201cover half\u201d of the Fortune 500.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Azure plans reflected wider moves at Microsoft. According to Velastegui, the company\u2019s AI strategy was laser-focused on delivering powerful products. A<\/span><span style=\"font-weight: 400;\"> recent <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.mckinsey.com\/capabilities\/quantumblack\/our-insights\/the-state-of-ai-in-2023-generative-ais-breakout-year\">McKinsey report<\/a><b>\u00a0<\/b>found that this approach was common among successful AI adopters.<\/p>\n<p><span style=\"font-weight: 400;\">\u201cThey\u2019re not just focusing on efficiency and operation, they\u2019re creating new products and new capabilities\u00a0that they\u2019re selling as part of their business or providing as a service,\u201d Velastegui says.<\/span><\/p>\n<figure class=\"post-image post-mediaBleed aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-1405810 js-lazy\" alt=\"Photo of Sophia Velastegui\" width=\"1640\" height=\"1093\" sizes=\"auto, (max-width: 1640px) 100vw, 1640px\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL.jpeg\" srcset=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL.jpeg 1640w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-280x187.jpeg 280w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-203x135.jpeg 203w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-405x270.jpeg 405w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-1536x1024.jpeg 1536w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-796x531.jpeg 796w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-1592x1061.jpeg 1592w\"\/><figcaption><a rel=\"nofollow noopener\" target=\"_blank\" href=\"#\" data-url=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Feditorial.thenextweb.com%2Fdeep-tech%2F2024%2F04%2F19%2Fhow-openai-microsoft-created-ai-giant%2F&amp;via=thenextweb&amp;related=thenextweb&amp;text=Check out this picture on: Velastegui spent five years on Microsoft\u2019s AI teams. Credit: Sophia Velastegui\" data-title=\"Share Velastegui spent five years on Microsoft\u2019s AI teams. Credit: Sophia Velastegui on Twitter\" data-width=\"685\" data-height=\"500\" class=\"post-image-share popitup\" title=\"Share Velastegui spent five years on Microsoft\u2019s AI teams. Credit: Sophia Velastegui on Twitter\"><i class=\"icon icon--inline icon--twitter--dark\"\/><\/a>Velastegui spent five years on Microsoft\u2019s AI teams. Credit: Sophia Velastegui<\/figcaption><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-1405810\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL.jpeg\" alt=\"Photo of Sophia Velastegui\" width=\"1640\" height=\"1093\" srcset=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL.jpeg 1640w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-280x187.jpeg 280w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-203x135.jpeg 203w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-405x270.jpeg 405w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-1536x1024.jpeg 1536w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-796x531.jpeg 796w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2024\/04\/Sophia-Velastegui-head-shot-2021-FINAL-1592x1061.jpeg 1592w\"\/><\/figure>\n<p><span style=\"font-weight: 400;\">Azure is now the world\u2019s fastest-growing cloud computing platform \u2014 and dramatically narrowing the gap to long-term leader Amazon Web Services. OpenAI has played a key role in the revival.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Raimo Lenschow, a stock analyst at Barclays, the GPT giant gives Microsoft a \u201cmassive, competitive advantage over Google and Amazon.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cHistorically, if you\u2019re a cool startup that was doing something amazing, Microsoft wasn\u2019t really your first choice,\u201d Lenschow <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/apnews.com\/article\/microsoft-ceo-satya-nadella-10th-anniversary-ai-6f6f56d78b6028020ec8744e73b46479\"><span style=\"font-weight: 400;\">told<\/span><\/a><span style=\"font-weight: 400;\"> the Associated Press in February. \u201cSo the fact that [Nadella] got OpenAI to commit to Azure was an amazing masterstroke.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Azure was just the first\u00a0of the pair\u2019s collaborations. OpenAI\u2019s models were rapidly spreading across Microsoft\u2019s product portfolio.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Microsoft_enters_the_LLM_era\"><\/span>Microsoft enters the LLM era<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">OpenAI had a breakthrough moment in <\/span>2020. That June,<span style=\"font-weight: 400;\"> the startup unveiled a powerful new LLM that sparked the flame for today\u2019s AI explosion:\u00a0GPT-3. The architecture laid the foundations for ChatGPT.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The New York Times <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2020\/07\/29\/opinion\/gpt-3-ai-automation.html\">called<\/a> GPT-3\u2019s ability to produce prose, poetry, and code \u201camazing\u201d, \u201cspooky\u201d, \u201chumbling\u201d, and \u201cmore than a little terrifying.\u201d Wired <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wired.com\/story\/ai-text-generator-gpt-3-learning-language-fitfully\/\">said<\/a> the model was \u201cprovoking chills across Silicon Valley.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Microsoft was clearly impressed. In September, the software giant inked a new deal with OpenAI that provided an exclusive licence to GPT-3.<\/span><\/p>\n<p>Velastegui led Microsoft\u2019s exploration of the model\u2019s potential\u00a0use cases, from search and business applications to low-code development platforms.<\/p>\n<p><span style=\"font-weight: 400;\">The applications quickly expanded across the company\u2019s products. When the World Economic Forum rolled into Davos last year,\u00a0Nadella said Microsoft\u00a0planned to put \u201ctools like ChatGPT into all of its products.\u201d But the integration needed firm guardrails.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c<\/span><span style=\"font-weight: 400;\">ChatGPT is interesting, but it doesn\u2019t do sources\u2026 It goes into this black box and you don\u2019t understand why it\u2019s behaving the way it is,\u201d Velastgui says.\u00a0<\/span><\/p>\n<p>To provide what <span style=\"font-weight: 400;\">she<\/span> calls \u201ctrusted information,\u201d Microsoft added references to LLM outputs. The annotations link to the information\u2019s sources.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"AI_risks_and_rewards\"><\/span>AI risks and rewards<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"post-image post-mediaBleed aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-1018090 js-lazy\" alt=\"Sam Altman sitting next to Elon Musk\" width=\"1280\" height=\"640\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman.jpg\" srcset=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman.jpg 1280w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman-280x140.jpg 280w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman-540x270.jpg 540w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman-270x135.jpg 270w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman-796x398.jpg 796w\"\/><figcaption><a rel=\"nofollow noopener\" target=\"_blank\" href=\"#\" data-url=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Feditorial.thenextweb.com%2Fdeep-tech%2F2024%2F04%2F19%2Fhow-openai-microsoft-created-ai-giant%2F&amp;via=thenextweb&amp;related=thenextweb&amp;text=Check out this picture on: OpenAI founder Sam Altman (left) worked with Elon Musk before partnering with Nadella. Credit: Y Combinator\" data-title=\"Share OpenAI founder Sam Altman (left) worked with Elon Musk before partnering with Nadella. Credit: Y Combinator on Twitter\" data-width=\"685\" data-height=\"500\" class=\"post-image-share popitup\" title=\"Share OpenAI founder Sam Altman (left) worked with Elon Musk before partnering with Nadella. Credit: Y Combinator on Twitter\"><i class=\"icon icon--inline icon--twitter--dark\"\/><\/a>OpenAI founder Sam Altman (left) worked with Elon Musk before partnering with Nadella. Credit: Y Combinator<\/figcaption><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-1018090\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman.jpg\" alt=\"Sam Altman sitting next to Elon Musk\" width=\"1280\" height=\"640\" srcset=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman.jpg 1280w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman-280x140.jpg 280w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman-540x270.jpg 540w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman-270x135.jpg 270w, https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2017\/01\/Elon-Musk-Sam-Altman-796x398.jpg 796w\"\/><\/figure>\n<p>Further safeguards sought to reduce the risks of\u00a0harmful outputs. Safety<span style=\"font-weight: 400;\"> filters, abuse monitoring, hallucination detection., and simulating adversarial attacks have strengthened the defences.<\/span><\/p>\n<p>\u201cThe reason why Microsoft didn\u2019t just leverage ChatGPT as it is,\u201d Velastegui says, \u201cis that ChatGPT is trained on all of the internet \u2014\u00a0the good, the bad, the ugly, and the very ugly.\u201d<\/p>\n<p><span style=\"font-weight: 400;\">Not all the restrictions were successful, however. <\/span>A Microsoft engineer <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/tech\/ai\/microsoft-engineer-shane-jones-warns-copilot-ai-tool-generates-harmful-images-needs-better-safeguards-659ac2a2\">warned<\/a> a design tool powered by OpenAI was generating violent and sexual images. The outputs also featured \u201cpolitical bias, underaged drinking and drug use, misuse of corporate trademarks and copyrights, conspiracy theories, and religion to name a few,\u201d the engineer told the FTC.<\/p>\n<p>Tools harnessing ChatGPT have also produced <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/antoniopequenoiv\/2024\/02\/28\/microsoft-investigates-harmful-chatbot-responses-the-latest-chatbot-blunder-from-top-ai-companies\/\">disturbing outputs<\/a>. Microsoft said the behaviour was limited to a small number of prompts used to bypass safety measures. The company also pledged to investigate the concerns. In the meantime, the AI roll-outs are continuing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Embedding_OpenAI_into_Microsoft\"><\/span>Embedding OpenAI into Microsoft<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Microsoft has baked OpenAI into a diverse array of apps. One is\u00a0 Copilot, a coding tool that conducts <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-04-17\/microsoft-s-ai-copilot-is-starting-to-automate-the-coding-industry\">a growing proportion<\/a> of programming tasks. <\/span><\/p>\n<p><span>Another is the revamped Bing search engine. Microsoft<span style=\"font-weight: 400;\"\/>\u00a0unveiled the AI-powered update in February 2023 \u2014 a month after announcing a fresh investment in OpenAI, reportedly worth a whopping $10bn. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nadella <\/span><span style=\"font-weight: 400;\">heralded Bing\u2019s rebirth as a \u201cnew day in search.\u201d\u00a0<\/span>By adding OpenAI\u2019s models to the system, Microsoft hoped to create a conversational rival to Google\u2019s market conqueror.<\/p>\n<p><span style=\"font-weight: 400;\">That remains a distant goal, but the early results showed promise. Within six weeks of the launch, page visits on Bing had risen 15.8% while Google\u2019s had declined by 1%, <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/technology\/openai-tech-gives-microsofts-bing-boost-search-battle-with-google-2023-03-22\/\"><span style=\"font-weight: 400;\">according to<\/span><\/a><span style=\"font-weight: 400;\"> analytics firm Similarweb.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">OpenAI has also entered the Microsoft 365 Office apps. Word, Excel, PowerPoint, and Outlook now include an AI assistant called Copilot, which generates new content and analysis in response to prompts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The move highlighted Microsoft\u2019s competitive advantage. <\/span><span style=\"font-weight: 400;\">\u201c<\/span><span style=\"font-weight: 400;\">Can Google work with OpenAI instantly\u2026 and bring it to their products? The answer is no,\u201d Velastegui says.\u00a0<\/span><\/p>\n<p>Microsoft\u2019s rivals, she adds, can still integrate OpenAI\u2019s <span style=\"font-weight: 400;\">off-the-shelf products. But that blunts the software\u2019s edge.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThat means your competitor can do the same,\u201d Velastegui adds. \u201cIf it\u2019s easy for you, it\u2019s also easy for them.\u201d<\/span><\/p>\n<p>Microsoft\u2019s exclusive access soon paid off. <span style=\"font-weight: 400;\">By the end of 2023, shares in the company had <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/technology\/investors-see-microsofts-stock-market-value-leaving-apple-behind-2024-01-29\/#:~:text=Microsoft's%20shares%20also%20rallied%2057,S%26P%20500%2C%20according%20to%20LSEG.\"><span style=\"font-weight: 400;\">surged by 57%<\/span><\/a><span style=\"font-weight: 400;\"> year-on-year. Analysts credited the rally to Microsoft\u2019s lead in generative AI.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_future_relationship\"><\/span>The future relationship<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Not every OpenAI addition has been a hit. Early customers of Copilot <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/tech\/ai\/early-adopters-of-microsofts-ai-bot-wonder-if-its-worth-the-money-2e74e3a2\"><span style=\"font-weight: 400;\">have decried<\/span><\/a><span style=\"font-weight: 400;\">\u00a0the service\u2019s costs. Users\u00a0of other Microsoft products, meanwhile, have\u00a0grown frustrated with the coding tool\u2019s <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.pcworld.com\/article\/2301770\/eww-copilot-might-auto-launch-with-windows-soon.html\"><span style=\"font-weight: 400;\">relentless spread<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the future, the tie with OpenAI could loosen. Microsoft is also integrating services from rival companies, such as Paris-based Mistral AI, which last month attracted a \u20ac15mn cash injection from the Windows maker. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Alongside the external addition,\u00a0Microsoft is investing in homegrown foundation models. The company ultimately plans for Azure to become a \u201cmodel garden.\u201d\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the evolving world\u00a0of AI, Microsoft\u2019s future relationship with OpenAI is uncertain. But the marriage thus far has been extremely successful. It also offers useful lessons on AI strategies. Velastagui singles out one for special attention.<\/span><\/p>\n<p>\u201cDon\u2019t solve these micro problems, issues, or\u00a0goals,\u201d she says. \u201cSolve\u00a0the one that will make a difference in the business.\u201d<\/p>\n<p><i><span style=\"font-weight: 400;\">One of the themes of this year\u2019s TNW Conference is Ren-AI-ssance: The AI-Powered Rebirth. If you want to go deeper into all things artificial intelligence, or simply experience the event (and say hi to our editorial team), we\u2019ve got something special for our loyal readers. Use the code TNWXMEDIA at checkout to get 30% off your <\/span><\/i><i><span style=\"font-weight: 400;\">business pass<\/span><\/i><i><span style=\"font-weight: 400;\">, <\/span><\/i><i><span style=\"font-weight: 400;\">investor pass<\/span><\/i><i><span style=\"font-weight: 400;\"> or startup packages (<\/span><\/i><i><span style=\"font-weight: 400;\">Bootstrap<\/span><\/i><i><span style=\"font-weight: 400;\"> &amp; <\/span><\/i><i><span style=\"font-weight: 400;\">Scaleup<\/span><\/i><i><span style=\"font-weight: 400;\">).<\/span><\/i>\n                        <\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/how-openai-microsoft-created-ai-giant\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just a decade ago, the world\u2019s biggest tech beast was a relative minnow. Microsoft had become notorious for disappointing product launches, stagnant innovation, and losing top talent. The\u00a0first true software giant was becoming a big tech dinosaur. Fast forward to 2024 and Microsoft is the planet\u2019s most valuable business. Under the leadership of CEO Satya&#8230;<\/p>\n","protected":false},"author":1,"featured_media":617534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/tnw-blurple?filter_last=1&fit=1280%2C640&url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2024%2F04%2FUntitled-design.jpeg&signature=915c114b142f78788f54c678fe0157ef","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-617533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/617533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=617533"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/617533\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/617534"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=617533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=617533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=617533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}