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2023-08-20 at 14:16 #416956Nat QuinnKeymaster
In 1995, Microsoft Corp. co-founder Bill Gates sent a memo calling the internet a âtidal waveâ that would be crucial to every part of the companyâs business. Nearly two decades later, Microsoftâs current leader, Satya Nadella, said he believes the impact of artificial intelligence will be just as profound.
âThe Bill memo in 1995, it does feel like that to me,â Nadella said on this weekâs episode of The Circuit With Emily Chang. âI think itâs as big.â
Central to the latest attempt to transform Microsoft is OpenAI, a startup whose generative AI technology has created so much buzz that it snagged a $13 billion commitment from the software giant.
âWe have a great relationship,â OpenAI chief executive officer Sam Altman said on The Circuit. âThese big, major partnerships between tech companies usually donât work. This is an example of it working really well. Weâre super grateful for it.â
The alliance has plenty of critics. The loudest is Elon Musk, who co-founded OpenAI with Altman and then split from the company, citing disagreements over its direction and the addition of a for-profit arm. He has said OpenAI is now âeffectively controlled by Microsoft.â
In response to a question about Muskâs critiques and the prospect that Microsoft could acquire OpenAI, Altman said, âCompany is not for sale. I donât know how to be more clear than that.â
Just as Netscape inspired Gatesâ internet memo, the creation of OpenAI, and Microsoftâs support of it, was spurred in part by the threat of Google dominating AI. The architecture for OpenAIâs ChatGPT and Microsoftâs Bing chatbot, known as transformers, was invented by Google. Although Google remains competitive in AI, Microsoft and OpenAI are seen as the early leader.
Of course, after Gatesâ edict, Microsoftâs web browser muscled Netscape out of the market and catalyzed a crippling antitrust lawsuit from the US government. In AI, Altman said OpenAIâs position is far from assured. âThis is not only a competitive environment, but I think this is probably the most competitive environment in tech right now,â he said.
A Microsoft spokesperson said the company welcomes a discussion with governments about ensuring competition in AI continues. In the Circuit interview, Nadella cautioned that the true impact of AI remains to be seen.
âWe in the tech industry are classic experts at overhyping everything,â the Microsoft CEO said. âWhat motivates me is I want to use this technology to truly do what I think at least all of us are in tech for, which is democratising access to it.â
© 2023 Bloomberg
SOURCE:Microsoft CEO says AI is a tidal wave as big as the internet – Moneyweb
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