2023 is still early days, but the tech buzzwords are already clear. Big tech companies can’t stop talking about his AI, and it’s easy to see why. The launch of ChatGPT by OpenAI has changed public perception of the power of artificial intelligence, and the potential applications in the business world and beyond are enormous.
Startup technology companies microsoft (MSFT 0.07%)said it will invest $1 billion in 2019, with billions more in revolutionary technology companies.
Not surprisingly, AI was a major theme on Microsoft’s earnings call. The company’s performance has been subdued by factors such as headwinds in the PC market, but long-term investors should focus on the company’s progress in artificial intelligence.
Microsoft’s AI strategy
The partnership between Microsoft and OpenAI is already bearing fruit. Earlier this month, the company announced the general availability of his Azure OpenAI service. This will allow customers to apply for access to his GPT-3 Large Scale Language Model AI and soon ChatGPT, as well as his DALL-E 2 image generation AI. among other tools.
We also introduced Github Copilot. It’s an OpenAI-powered tool that helps programmers with real-time code and function suggestions. So far he has over 1 million people using his GitHub Copilot. The company also claims to have the most powerful AI supercomputing infrastructure in the cloud.
As CEO Satya Nadella sees it, these moves and the OpenAI partnership are meant to build a first-mover advantage in artificial intelligence and look to transform the way technology is used. Discussing AI on an earnings call as a driving platform, he said, “This is where Microsoft works with customers to realize more value from their technology spending, build long-term loyalty, and work together internally. It’s an important time to help share position, a unique cost structure that aligns with revenue growth.”
Delivering more value to customers through AI should boost the company’s business in the long run, and he also noted the company’s recent layoffs so it can devote more resources to artificial intelligence. Did.
“And finally, we intend to lead the AI era because we know that the greatest enterprise value will be created during platform migration,” Nadella added. In other words, it’s important for Microsoft to be in pole position as these new AI capabilities are adopted, and that statement shows why he’s focused on gaining a first-mover advantage.
As an example of how AI is driving business growth, executives shared that Azure Machine Learning revenue has more than doubled each quarter in the last five quarters.
the competition never stops
Companies with the most to lose Microsoft’s May rise with OpenAI alphabet (Google 1.90%) (GOOG 1.56%)Google’s parent company has also spoken about investing in AI for years, but the company has shown little when it comes to commercialized products, such as using AI to improve search results.
Alphabet acquired AI technology company Deepmind in 2014 and developed its own large-scale language model LaMDA, which outperforms ChatGPT.
Alphabet CEO Sundar Pichai also turned to AI when he announced layoffs earlier this month, saying that Alphabet pivoted to AI-first a few years ago, adding, The opportunity is in front of us and we are ready,” he added. Be bold and responsible. “
meta platform‘(meta 3.01%) The chief AI scientist also refuted the notion that ChatGPT is a novel technology or that OpenAI is ahead of other big tech companies such as Meta and Alphabet.
To be clear, I am not criticizing OpenAI’s work or claims.
I would like to thank the public and the media for viewing chatGPT as this incredibly new, innovative, and unique technological breakthrough, far ahead of everyone else. I’m trying to correct the *recognition* by .
— Yann LeCun (@ylecun) January 24, 2023
Is Microsoft the Top Dog in AI?
There will certainly be debates about which companies have the best technology in AI, but it may not matter as having the best technology does not necessarily lead to the best or most successful products. not. Alphabet, for example, seems to be plagued by the innovator’s dilemma. One of the reasons we are reluctant to expose our AI is because we don’t want to disrupt the search monopoly.
LeCun, head of AI at Meta, said on Twitter: Ups. If Google and Meta haven’t released something like chatGPT, it’s not because they can’t.
In November, Meta released Galactica, its own large-scale language model for scientists, but pulled it after just three days after being criticized for inventing things.
However, Microsoft is expected to release a version of Bing with ChatGPT as early as March, which could force Alphabet’s hand. In fact, following the release of ChatGPT, Alphabet held a “Code Red” meeting.
Microsoft also has the advantage of being more diversified than tech giants like Alphabet and Meta, which derive most of their revenue from advertising. Microsoft can apply AI to a wide range of products, including Azure, GitHub, software like Office Dynamics, enterprise resource planning products, devices like Surface, and Bing.
The Windows maker has been working quickly with new technology, and the company’s recent decision to invest another billion dollars in OpenAI shows that the partnership is delivering a good return on that investment. increase.
After Microsoft lost on mobile, Nadella clearly sees the value of getting into AI early. For now, Microsoft is at the forefront of the AI race. After Alphabet’s Code Red and Meta’s Galactica went bankrupt, both are now on the defensive.
If Microsoft can maintain its lead, it could mean huge profits. As we’ve already seen in search, social, and mobile, the big tech markets are often winner-takes-all.