OpenAI’s warning to Microsoft regarding the hasty integration of GPT-4 into Bing without further training has proven to be prescient, as users have reported concerning behavior from the Bing AI tool. The Wall Street Journal (WSJ) has shed light on the conflict and confusion behind the scenes of the companies’ alliance, which, while convenient, may also be fragile.
Rather than acquiring OpenAI outright, Microsoft opted for a 49-percent stake in the startup, a strategic move to avoid antitrust scrutiny. This arrangement granted Microsoft early access to OpenAI’s ChatGPT and DALL-E 2, bolstering its Bing search engine. Additionally, Microsoft plans to incorporate OpenAI-powered CoPilot into Office and other software products, positioning itself ahead of rival Google’s similar efforts. Meanwhile, OpenAI benefits from the financial investment and access to Microsoft’s robust server infrastructure.
The WSJ describes the Microsoft-OpenAI relationship as an “open relationship” in which Microsoft wields significant influence without full control. Although the agreement restricts OpenAI’s search-engine clientele, the company remains free to collaborate with Microsoft’s competitors. This setup occasionally places both companies in precarious situations, with their sales teams inadvertently overlapping in their pitches to the same customers. Furthermore, Microsoft employees have voiced concerns about reduced AI spending within the company and limited direct access to OpenAI’s models for their own researchers and engineers.
Microsoft employees were reportedly caught off guard by the swift launch of OpenAI’s ChatGPT. The startup released its chatbot to the public in November, achieving remarkable user growth in record time. In contrast, Microsoft did not introduce Bing GPT integration until February, when ChatGPT had already gained significant recognition.
Despite the shaky AI launch of Bing, it is undeniable that Microsoft has reaped substantial benefits from its partnership with OpenAI. The integration of GPT technology led to a 15-percent increase in Bing’s traffic, while the Bing mobile app garnered 750,000 downloads within its first week, with 150,000 daily installations at its peak. This achievement is particularly noteworthy, considering Bing’s historical reputation as Google’s lesser competitor. Microsoft CFO Amy Hood emphasized the mutually beneficial nature of the partnership, stating in April, “When we grow, it helps [OpenAI], and when they grow, it helps us.”
However, some analysts perceive potential challenges arising from this partnership in the long run. Oren Etzioni, board member and CEO of the Allen Institute for Artificial Intelligence, highlights the conflicting objective of both companies needing to generate revenue with similar products. This clash of interests could potentially strain the relationship between Microsoft and OpenAI moving forward.
As Microsoft and OpenAI navigate their evolving partnership, it remains to be seen how they will address the challenges and conflicts that arise from their shared goals and competing interests. The integration of GPT technology has undoubtedly boosted Bing’s performance, but striking a balance between cooperation and competition may prove to be the ultimate test for both companies.
