Microsoft is all in On Generative A.I.

Microsoft is all in On Generative A.I.

?? How will Microsoft Bring ChatGPT to Word, Outlook, Bing, and vs. Google?

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?? Bing, ?? Outlook, Word, to the Moon! ??

Microsoft's infatuation with ChatGPT via investing in OpenAI is going to get interesting in 2023. One of the hottest trends in artificial intelligence (AI) this year has been the emergence of popular?generative AI?models.?Microsoft is willing to bet $Billions of dollars on this new emerging trend and try to get an inside track.

And who would blame them for going on the offense? They are the most diversified business with a very good Cloud in Azure and some of the best AI researchers at Microsoft Research in 2023.

Microsoft is set to invest $10 billion in OpenAI as part of a funding round that would value the company at $29 billion, news site Semafor reported Tuesday. Microsoft will reportedly get a 75% share of OpenAI’s profits until it makes back the money on its investment, after which the company would assume a 49% stake in OpenAI.

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Microsoft is likely to fund OpenAI more as its own private A.I. Lab with?GPT-4 likely?coming out this Spring.

While I can understand companies like Canva or Adobe integrating text-to-image Generative A.I., would I want to use ChatGPT in Microsoft word?

The rumor is that Microsoft has been in talks to invest $10 billion into the owner of ChatGPT.?Semafor is now reporting?that Microsoft is eyeing a $10 billion bet on OpenAI that would see the software giant get 75 percent of profits and a 49 stake in OpenAI.

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Some even think Generative A.I. and ChatGPT specifically, is an "i-Phone moment" for A.I. adoption.

The report comes amid speculation that Microsoft is planning to incorporate OpenAI’s technology into its search Bing, Office and Email software.

The Information reported about how?Microsoft plans to integrate ChatGPT?and GPT-4 into its software bundles like Word, Outlook, Bing and so forth.

OpenAI is valued internally at $29 Billion.

Microsoft’s engineers and researchers have worked to create personalized AI tools for composing emails and documents by applying OpenAI’s machine-learning models to customers’ private data, said another person with direct knowledge of the plan, which hasn’t previously been reported


Microsoft to get Most of the Profits


Semafor added new light to the rumors: Microsoft’s infusion would be part of a complicated deal in which the company would get 75% of OpenAI’s profits until it recoups its investment, the people said. (It’s not clear whether money that OpenAI spends on Microsoft’s cloud-computing arm would count toward evening its account.)

It seems like a pretty custom deal.

Read Semafor Breaking News

So think of it this way:


If OpenAI figures out how to make money on products like ChatGPT and image creation tool Dall-E, Microsoft will get 75% of the profits until it recoups its initial investment.


That’s pretty noteworthy.

2023 looks like a Generative A.I. battle between Microsoft and Google for the future of search among other things.

Since OpenAI, ChatGPT and Bing vs. Google is really trending, this is almost like a revelation.

The funding will also include other venture capital firms, and will value OpenAI at about $29B, Semafor reported. The funding is expected to be part of a “complicated deal” in which Microsoft will gain about 75% of OpenAI’s profits until the firm recoups the initial investment.

After recoupment, Microsoft will hold about 49% of OpenAI, while other investors will take a remaining 49% stake and OpenAI’s nonprofit parent will hold a 2% stake. But it is unclear if the deal has been finalized.

Microsoft is reportedly planning to integrate OpenAI’s ChatGPT technology into its Office applications. A new report from?The Information?suggests that the new AI-powered features will allow users to automatically generate text with natural language prompts in Outlook, Word, and PowerPoint.

I’m pretty sure the?March, 2023 launch of ChatGPT in Bing?has way more potential.

There are two ways they could to this, either increasing search share with a free access boosting Microsoft’s search advertising drastically or actually charging a?monthly subscription?for ChatGPT powered by GPT-4 with state-of-the-art RLHF with real-time web access.

Microsoft is building a suite of A.I. and no-code tools and ChatGPT should be among those, along with GitHub Copilot for both individuals and businesses. Coders using a better version of ChatGPT on Bing (paid) and GitHub Copilot at work would essentially be at least $30 of revenue for Microsoft per user. Everyone needs more productive software engineers right?

Google has?Pitchfork?and its own Generative A.I. division. Microsoft with the help of OpenAI is certainly appearing to make headway in 2022, all of these products including a likely Google demo of LaMDA in 2023 should make it an even more exciting year along with the evolution scores of?Generative A.I. tools?(see Ben’s???? Cool Tools).

If DeepMind was acquired by Google in 2014, will OpenAI soon be acquired by Microsoft? This is increasingly looking?like a distinct possibility. Amazon sponsoring a rival A.I. Lab is increasingly likely, that lab is?likely to be Stability.AI.

I don’t use Microsoft word products any longer, and having ChatGPT in it (outside of Excel) wouldn’t be that useful. I think the play for Microsoft outside of Bing, might actually be to integrate it into?Cortana?and?Microsoft Edge.?Edge that horrible browser Windows keeps trying to force me to use. Microsoft that is getting into Advertising more, needs to pair its new A.I. focus with that and not just Azure.

Let’s be real though?Microsoft Research?was one of the best things Microsoft ever did and now?Azure AI?is getting quite sophisticated. Initiatives like?their AI4Science?shows a lot of promise. Microsoft, is certainly back on the map in A.I and ChatGPT could be a big moment for them with Bing and how they decide to integrate it into their other products.

While Microsoft Research is now legit and OpenAI is seemingly doing important work, can Microsoft put it all together in 2023 and 2024 to once again seem like an A.I.-first company?

According to The Information, the two companies are in talks to integrate?ChatGPT?into Microsoft’s Office products such as Word, Outlook, and PowerPoint.

Microsoft is reportedly planning to launch a version of Bing that uses ChatGPT to answer search queries.?The Information?reports?that Microsoft hopes to launch the new feature before the end of March in a bid to make Bing more competitive with Google.

  • Bing (March, 2023)
  • Word, Outlook and Powerpoint

From an enterprise perspective the hybrid AI-human workforce truly is coming it would appear. With productivity dropping and layoffs taking place, one wonders if this is really going to be a big deal, or not.

Microsoft is going to be a?no-low code and RPA?(robotic process automation juggernaut. But how much it can challenge Google in more pure-play A.I. like search is not clear.

Microsoft has already been using large Transformer-based language models for text and correction suggestions or automatic responses in Outlook and Microsoft Teams for some time, but how will ChatGPT and OpenAI’s work show up directly in Microsoft’s product? If?OpenAI thinks its worth $29?billion, all of this could get quite expensive if Microsoft is intent on acquiring OpenAI.

The integration of ChatGPT into Office and Bing could help Microsoft improve its reputation and may be more of a customer retention play and an Ads play than anything else. In the 2021 fiscal year, Microsoft registered $8.53 billion in search advertising revenue. An increase of 10.2% from $7.74 billion in 2020. Not all of this can be attributed to Bing. I’ve heard they make around $12 billion as of 2022, though I could not independent verify this.

It would likely be more lucrative for Microsoft to charge yet another subscription around the use of ChatGPT, instead of trying to integrate it in a haphazard way into its other existing products. The genius of Microsoft is in its business diversification, not that its products are that great. Giving for example, LinkedIn paid users access to ChatGPT, is a fairly good idea. LinkedIn Sales Navigator is already around $100 a month, giving it for free there would be excellent value.

With paid subscriptions getting even more popular in 2023, ChatGPT there makes the most sense. Microsoft may be over zealous however to make its software seem like Windows could become the?operating system for A.I.?I understand their temptation around this pursuit. The?race to make A.I. voices?sound the most human is on. Apple is not doing so bad in this respect as it launched a catalogue of audiobooks that use its AI-powered digital voices.

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Microsoft needs to do a better job at creating new products around Generative A.I. and integrating ChatGPT with better product-marketing. The world is barely aware as it is that OpenAI is behind so much of Microsoft’s fresh new coats of paint. According to the?Decoder, Microsoft sells customized GPT-3 interfaces for enterprises through its Azure platform. In addition, the Github code AI Copilot is built on OpenAI’s Codex model, which in turn is a derivative of GPT-3. DALL-E 2 is integrated with Bing’s Image Creator tools.


I would hope Microsoft has the sense to brand ChatGPT as a stand-alone attractive subscription.


Juicing Bing and hoping Ad revenue rises without a subscription would likely not be sustainable as a proliferation of chatbots will be arriving soon enough, and not just OpenAI’s star of late 2022. Microsoft only has a brief first-mover advantage with GitHub Copilot and ChatGPT, so it better use it well.

Google Workspace and Canva, everyone will be upgrading their software tools with A.I. and Generative A.I. in particular. Microsoft while they have an inside lane, don’t have much time to make magic before they go back to being dry and boring Microsoft. They do so much, it’s hard for them to do anything particularly well. Trying to revitalize products on the decline, may not be the solution.

Microsoft and OpenAI have been working together since 2019. In October, The Information reported?Microsoft was planning a second investment in the AI company?and pays almost entirely for the computational costs of training OpenAI’s advanced AI models.

Microsoft and OpenAI have been working together since 2019. In October, The Information reported Microsoft was planning a second investment in the AI company and pays almost entirely for the computational costs of training OpenAI’s advanced AI models. OpenAI is now nearly not an independent company any longer, from so far as I can tell.

DeepMind was very costly over the years for Google and I don’t see how this isn’t the same sort of arrangement. Thankfully what OpenAI creates is at least a bit more useful than what DeepMind was doing for the past decade. Clearly assembling the bets researchers and minds in A.I. together is not by itself, enough. The fame of ChatGPT’s limited demo was a moment and it’s not clear if Microsoft has the sense to capitalize on it.

Microsoft’s use of ChatGPT-like functionality could help Bing rival Google’s Knowledge Graph, a knowledge base that Google uses to serve up instant answers that are regularly updated from crawling the web and user feedback. Besides bringing in more users in 2023, could Bing become a better experience than Google, less shocked with Ads? Already I find myself using?You.com?and?Perplexity.AI?more.

The reality is as impressive as Microsoft is with ChatGPT and OpenAI, Generative A.I. is this massive way of supposed innovation that’s coming:

Based on GPT-3.5, a large language model released last year, ChatGPT has wowed the web with its ability to generate answers and authentic-looking essays across an array of topics. - Tom Warren,?The Verge

That’s the thing Tom, we need Microsoft to do more than wow us, we need them to truly empower people to use A.I. to be more productive in their everyday lives.

While ChatGPT could help Bing challenge Google’s dominance, the reality is LaMDA may be even more impressive than what we have experienced with the ChatGPT demo, and it’s more likely to have viable voice integration and voice-chat interface.

For all the $Billions Microsoft is willing to throw at this Chatbot thing, they are unlikely to be a first-mover in any real sense as Google and other Generative A.I. startups manage to create surprising upgrades to the tools we used on the internet in 2022, including perhaps the ChatGPT demo done by OpenAI in December, 2022.

If you enjoy articles about A.I. at the intersection of breaking news join AiSupremacy?here. I cannot continue to write without community support. (follow the link below). For the price of a cup of coffee, Join 140 other paying subscribers.



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Todd Gustafson

Solutions Architect, CSEIP

1 年

Gonna get exciting

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Tolulope Zechariah

Experienced and Versatile Professional: Ghostwriter | Copywriter | Historian | Researcher | Event Manager | Web Content Specialist | Social Media Manager | S. Chauffeur

1 年

Interesting

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