49. Microsoft Diversifies from OpenAI

Microsoft is reportedly diversifying its artificial intelligence strategy by integrating internal and third-party AI models into its Microsoft 365 Copilot, reducing its reliance on OpenAI.

This shift aims to mitigate costs and improve speed for enterprise users. The decision follows concerns about Copilot's return on investment and mirrors similar moves by other Microsoft units, such as GitHub.

Ongoing negotiations between Microsoft and OpenAI concern the conversion of Microsoft's substantial investment into OpenAI equity and future access to OpenAI's advanced AI models.

Ultimately, this signals a strategic move away from sole dependence on a single AI provider.