Microsoft Now Sees OpenAI As A Tech Rival Just Like Apple And Google: What It Means

Microsoft has mentioned OpenAI as one of its rivals in the tech space

Microsoft and OpenAI have built a strong core of products with their tech and industry expertise but is it time to go their separate ways?

Microsoft has invested billions into ChatGPT maker OpenAI over the last 12 to 15 months but the company’s equation with the Sam Altman-run AI giant is now heading into a complicated situation. Reports this week claim that Microsoft now sees OpenAI as one of its rivals in the market, where it also includes the likes of Google, Apple, Amazon and Meta among others.

Microsoft has made full use of its reported $13 billion investment in OpenAI which has allowed the company to get first rights on ChatGPT and its new features.

But it seems that OpenAI’s latest moves in the industry, which includes the debut of its own AI-powered Search, has changed the direction of travel between these two companies who were operating as strategic partners so far.

The update on their relation has been confirmed by Microsoft’s latest annual report where it has categorised OpenAI as a competitor thanks to its AI offerings in search and news content now coming to the fore.

Time To Move On

Satya Nadella has talked about his likeness for Altman previously and at one stage he could have got him on board as the AI research chief at Microsoft earlier this year. But OpenAI has been making deals with its rivals Apple who now get ChatGPT 4 on macs before it comes to the Windows systems.

These altering developments will also compel Microsoft to view OpenAI as a competition, but even then we expect their mutual admiration and respect to keep the relations going strong albeit in a toned down manner. Microsoft has already developed its core AI solutions into Azure and Bing with the help of ChatGPT and it is likely that the company is now happy to build its own path for the future growth of the AI business.