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Microsoft Leverages OpenAI in Bold Move to Outpace Google and Apple

Daniel Kim Views  

Once thought to be a sinking ship, losing ground in artificial intelligence (AI) to Google and the software ecosystem to Apple, Microsoft Corporation is now in the spotlight. The tech giant is leveraging OpenAI to integrate AI into its software, raising hopes for a return to its past splendid days.

Microsoft unveiled various software services incorporating generative AI co-pilot at the annual developer conference Build on the 21st in Redmond, Washington.

Sam Altman, CEO of OpenAI, was seen at the Build event on May 21st, engaging in conversation with Kevin Scott, the Chief Technology Officer (CTO) of Microsoft Corporation.

The co-pilot is an interactive AI developed based on OpenAI’s language model, GPT4.

Since last year, the company has been expanding the use of co-pilot in websites, mobile apps, software tools, and operating systems to improve productivity.

At the event, Microsoft unveiled enterprise groupware and custom co-pilot production tools that incorporate the co-pilot.

CEO Satya Nadella said, “Today, we are unveiling over 50 new services and partnerships centered around co-pilot.”

In addition, starting today, MS’s cloud service Azure will provide OpenAI’s latest AI model, GPT-4o (GPT-PO) service.

Earlier on the 20th, Microsoft unveiled a Windows PC product optimized for co-pilot operation, touting its lower price and superior AI performance compared to Apple Inc.’s equivalent products.

On May 20th, Microsoft announced the launch of Co-pilot+PC, a PC product designed for generative AI operations, set to be released in June.

Microsoft’s strategy is to enhance its software competitiveness by combining OpenAI’s generative AI technology with virtually all of its products and services, including PCs, operating systems, productivity tools, groupware, video chat, and cloud services.

Microsoft dominated the global software market from the 1980s to the early 2000s through its flagship operating system, Windows.

However, Apple Inc. overtook it in market capitalization, which ushered in the smartphone era in 2011, and Google introduced Android as a powerful alternative to Windows in 2012. It was criticized for failing to respond to technological changes.

Even before the advent of OpenAI last year, Microsoft was evaluated as lagging behind Google, Amazon.com, Inc., and Meta Platforms, Inc. in the AI competition.

However, in January 2023, Microsoft spent approximately $13 billion to become the largest shareholder of OpenAI and establish a cooperative relationship, emerging as a strong operator in the generative AI market competition.

Norges Bank Investment Management YouTube Channel

Nadella appeared on a YouTube broadcast hosted by Norges Bank Investment Management in March and said, “There was a time when Google was solidifying its position as the decided winner in the AI competition among big tech companies, and Microsoft was shooting in the dark.” He added, “However, we wisely chose our partners, and we have been able to compete with Google through innovation in the right direction.”

The company plans to accelerate synergy creation with OpenAI in the future.

Since April, it has been building an AI hub in London, England, where Microsoft’s AI team and partners, including OpenAI, plan to cooperate closely to expand the supply of AI and software.

Sam Altman, CEO of OpenAI, surprised attendees at the event and showcased the partnership between the two companies. “This is the most exciting time since the advent of the internet and mobile phones, and it could even be a bigger opportunity,” he stated.

The market has reacted favorably to Microsoft’s moves. In January of this year, the company became the second in the world to exceed a market capitalization of $3 trillion.

As of May 22nd, Microsoft Corporation’s market capitalization stands at $3.19 trillion, maintaining its position as the world’s number one.

Daniel Kim
content@viewusglobal.com

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