Open Al and Microsoft has highlighted the cracks in its corporate structure but what about Microsoft even though Sam ultman is back at open AI the tech giant might still be the winner shares of Microsoft spiked.
During the upheaval at open AI now prior to alman’s return to open AI Microsoft inviting the nonprofits employees onto the Microsoft AI lab team so is Microsoft on its way to dominating the AI industry for more on this Brent bracelin Piper Sandler analyst is here to tell us more so.
Is OpenAl associated with Microsoft?
So talk about the strategy here we saw s saan Adella voicing his support for Sam going back to open Ai and you know continuing to support there what is the strategy there as to how Microsoft still comes out on top sure well listen.
It’s been a very busy month with several new product launches several uh user events where Microsoft is getting a buy in for their first mover advantage in AI with really large Enterprises.
A censure going wall toall with GitHub co-pilot Open Al and Microsoft powered by open Ai and GPT for um large Enterprises um like Bay and Shopify that are building their AI uh uh interfaces and functionality uh using Microsoft Technology and open AI.
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Which company owns OpenAI?
So uh it is very critical as you think about Microsoft and this opening eye relationship that they have a much better understanding of governance and controls and Open Al and Microsoft the opportunity uh things are happening very fast um there’s a lot of excitement Microsoft has this first mover Advantage.
But we’ve seen a little bit of risk here surface around uh the Reliance around open Ai and and the structure there um clearly I think it was the right move for Microsoft to lend Support over a very short period of time.
When the the future of openi was very uncertain uh but ultimately we Open Al and Microsoft do think that open a and Microsoft are very very close partners and will continue to be close partners and we’re certainly happy to see Sam and the team still together with a minimal disruption to to Microsoft’s own.
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Is Microsoft the biggest shareholder of OpenAI?
AI Ambitions Brent with that Open Al and Microsoft said this is a partnership that existed before the upheaval at open aai did did anything fundamentally change for Microsoft over the last five days I think a lot is changed right I think one it’s exposed uh some additional risk right around Microsoft’s Reliance around uh gbd 4.
Open Al and Microsoft Open Ai and and so I think there’s Open Al and Microsoft also some risk to the structure of of of of of working with basically this leading uh innovator in in AI uh that Microsoft has put some money into yet doesn’t have a lot of governance um and control over.
So I think that’s uh Open Al and Microsoft certainly surfacing as something that needs to be addressed so absolutely Microsoft’s learned a lot over the last four days investors have learned a lot over the last four days ultimately if you put the drama aside I think this is probably one of the better outcomes for Microsoft particularly.
If you see them uh now start to have a board seat and and Open Al and Microsoft more St on the governance of this operation going forward and what does this do in terms of their leadership position.
How did Microsoft take over OpenAI?Open Al and Microsoft?
I mean we’re already seeing Amazon AWS um investing $4 billion into anthropic some of these Open Al and Microsoft other AI competitors here does this perhaps seeing some of that that blood in the water seeing some of that that corporate governance those issues there does that potentially narrow the Gap listen.
I think narrowing a gap in a 4-day period is is certainly hard Open Al and Microsoft to do I would just remind folks we’re very early in the evolution of this AI opportunity we see Microsoft clearly as a first move Advantage here they have about2 billion run rate in AI that is clearly far in way larger than any of their peers.
How much did Microsoft pay to OpenAI?
I don’t think they’re going to narrow that Gap in four days uh but it’s something to watch uh by no means uh is Microsoft the only winner here um I think early days internet there wasn’t One winner of the internet.
I think they’re all going to look at different ways they can leverage this new technology and try to capitalize on it l ing their own internal strengths Microsoft just happens to have a very bold vision of what they want to leverage.
Here what they want to do and again seeing stability at their partner open AI is really important yeah Brent I mean going back to what you just said about the risk that’s been exposed for Microsoft over the last 5 days Open Al and Microsoft because of what you have said is the lack of governance that was at open AI does that Force SAA Adella to maybe diversify.
Who invented GPT?
A little and we’ve seen the close lock between these two companies but a lot could have imploded if if all these employees left at open AI on on one hand I think investors will press Microsoft to to have some sort of uh diversification strategy.
It’s it’s natural uh to have a multi-source relationship on Silicon multi-source relationships uh for uh multiple opponents uh so that I think is something you’re going to see investors lean in a little bit on but I will go back if you think about the role of AI and moving quickly.
Is OpenAl a profitable company?
You’re seeing Amazon starting to standardize right and and work closer with uh with anthropic um Oracle with Oracle cloud is partnering with cohere so Open Al and Microsoft I look at cloud and these AI generative AI larg L models as as peanut butter and jelly they go together they go.
They’re Better Together uh you’re going to have to make some Open Al and Microsoft some choices because there are limited number of of options today that will change in the next 10 years but I think it is important uh to partner and Microsoft has has selected the partner here that happens to to be the leader.
How will Microsoft use ChatGPT?
I think it’s important that they continue that path but absolutely over the next 10 years longer term they’re going to have to have a more Open Al and Microsoft Diversified strategy well it certainly helped the stock over the last five days investors happy about that Brent bracelin Piper Sandler analyst.
Here what they want to do and again seeing stability at their partner open AI is really important yeah Brent I mean going back to what you just said about the $4 billion into anthropic some of these other AI competitors here does this perhaps seeing some of that that blood in the water.
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