We are living in the world of AI and witnessing all that’s being unveiled by the top tech companies of the world. As we all know, in this race, OpenAI is a big player. Microsoft has partnered with Microsoft to support its growth, this also involves a $13 billion investment in the company. Microsoft even integrates OpenAI’s products across its platforms and consumer products and is the exclusive cloud provider for OpenAI. So you might think of these two big guys as friends, and not competitors, right? Wrong.
In its recent SEC filing, Microsoft has labeled OpenAI as its competition for the very first time. OpenAI joins the list of Anthropic, Amazon, and Meta which are Microsoft’s competitors. OpenAI was listed as a rival in search due to its newly announced SearchGPT feature. This new search engine closely competes with Microsoft’s Bing.
Also read: OpenAI announces Google search rival SearchGPT: What is it and how to use
This is not that simple. There are also some growing antitrust concerns surrounding the two players. FTC is monitoring the relationship between Microsoft and OpenAI, as well as similar partnerships between cloud providers and AI startups. In response to this, Microsoft gave up its board observer seat at OpenAI.
Overall, for the past couple of months, Microsoft has been diversifying its AI strategy. In March, it hired the co-founders of Inflection AI, Mustafa Suleyman, and Karén Simonyan, to lead its new AI division. Microsoft is heavily focused on building its own AI initiatives like Microsoft Copilot.
Also read: Microsoft adds a new Copilot key to Windows 11 PCs: Here’s how it will help
It will be interesting to see where the OpenAI and Microsoft partnership heads. Both of these companies do drive the AI trend. This move clearly suggests that Microsoft is strategically positioning itself to deal with the complexities of competition and partnership in the rapidly growing AI landscape.
