Microsoft Shifts Gears: Expands 365 Copilot AI to Reduce Reliance on Sam Altman's OpenAI

Microsoft is eyeing to expand its artificial intelligence offerings under its flagship AI product, Microsoft 365 Copilot, according to Reuters. The tech giant is planning to add in-house and third-party models to bring down costs and reduce reliance on Sam Altman’s OpenAI. Reportedly, Microsoft CEO Satya Nadella is keeping track of the development. If the ongoing experiment is successful, it will eventually benefit Microsoft's users as costs will come down for them as well. 

While highlighting the partnership with OpenAI, a Microsoft spokesperson said, “OpenAI remains our collaborator on frontier models”. 

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What is Microsoft 365 Copilot?  

Microsoft ventured into the AI business by launching 365 Copilot in March last year. Its AI product incorporated the OpenAI GPT-4 model. It offers multimodal large language model (LLM) GPT-4 and the Dall-E 3 text-to-image model. Additionally, it is equipped with advanced AI technologies such as machine learning, deep learning and natural language processing. It adds generative AI to the workplace, including features like automated suggestions, content creation and data insights. 

Keeping data privacy in mind Microsoft’s 365 Copilot is equipped with commercial data protection to safeguard users' information. The feature ensures that users’ responses aren’t stored to train the underlying LLMs. 

Since its launch, Microsoft 365 Copilot has faced several setbacks, mainly due to its pricing and functionality. Despite these roadblocks, Microsoft’s AI product has witnessed signs of adoption, and it is likely to register 10 million paid subscribers by the end of 2024, according to a report by BNP Paribas Exane’s predictions. Moreover, the report predicts that nearly 70 per cent of Fortune 500 companies are already making use of Microsoft’s AI product. 

Presently, the giant has got its hands on smaller in-house models like Phi-4, a small language model and customising open-weight models to ensure efficiency and greater AI assistant affordability. A recently added feature of the product includes AI capabilities integrated directly into Word and PowerPoint. 

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