Microsoft has invested nearly $14 billion in OpenAI, but now it is reducing its reliance on ChatGPT parent: report

Microsoft Corporation (NASDAQ:MSFT) reportedly plans to reduce its reliance on ChatGPT-Manufacturer OpenAI.

What happened: Microsoft has been working to integrate internal and third-party artificial intelligence models into its AI product. Microsoft 365 CopilotReuters reported, citing sources familiar with the action.

This move is a strategic move to diversify and reduce costs from OpenAI’s current underlying technology.

The Satya NadellaThe 365 Copilot-led company is also reducing 365 Copilot’s reliance on OpenAI due to concerns about cost and speed for enterprise users, the report said, citing the sources.

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A Microsoft spokesperson was quoted in the report as saying that OpenAI continues to be the company’s partner in frontier models. “We integrate different models from OpenAI and Microsoft depending on the product and experience.”

OpenAI and Microsoft did not immediately respond to Benzinga’s request for comment.

According to reports, Microsoft 365 Copilot has yet to prove its return on investment for businesses. The technology giant did not provide specific sales data on the number of licenses sold.

Why it matters: This move mirrors moves by other Microsoft business units that have changed the way they use OpenAI models. For example, GitHubAcquired by Microsoft in 2018, added models from Anthropocene And Alphabet Inc.s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google in October as alternatives to OpenAI’s GPT-4.

It was previously reported that company insiders were concerned that Microsoft’s AI strategy relies heavily on its partnership with OpenAI.

In October, the two companies held discussions about how to convert Microsoft’s $14 billion investment in OpenAI into equity in the AI ​​company.

According to a report published in December, OpenAI plans to remove a clause that limits Microsoft’s access to its most advanced AI models when artificial general intelligence is achieved.

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