Microsoft Forms Dedicated Team for Next-Gen AI, Aiming for Compact and Cost-Effective Language Models

In a strategic move, Microsoft is reportedly delving into the development of artificial intelligence (AI) technology that is not only more compact but also more cost-effective than its current offerings sourced from OpenAI.

According to sources, Microsoft has established a specialized team, referred to as the "Gen AI" team, with a primary focus on creating conversational AI solutions that demand lower processing power compared to existing technologies. The company has also shifted key developers from its research group to bolster the efforts of this new team.

It is anticipated that this team will be integrated into the Azure cloud unit and potentially led by Microsoft corporate vice president Misha Bilenko.

Microsoft's Current Dependency and Strategic Shift:

Microsoft, until now, heavily relied on OpenAI for its AI-based product development, utilizing models like GPT-4 for Bing Chat and Dall-E 3 for the Bing AI Image Creator. However, the recent move indicates a strategic shift as Microsoft aims to develop its own AI capabilities in-house, potentially reducing its dependency on external sources.

Copilot Pro Subscription and Enhanced AI Offerings:

Microsoft is making significant strides in AI, evident in the recent launch of Copilot Pro subscription. This subscription provides users access to advanced AI-powered Office features, priority access to cutting-edge language models like OpenAI's GPT-4 Turbo, and the ability to customize Copilot, known as Copilot GPT. Additionally, the Bing AI image generator now offers improved image quality, showcasing Microsoft's commitment to enhancing its AI capabilities across various domains.

Diversification of Copilot Offerings:

Microsoft is expanding its Copilot AI assistant offerings with three distinct variants. The free version operates as a conventional chatbot, while the Copilot Pro subscription, priced at $20 per month, provides enhanced features. Moreover, the Copilot for Microsoft 365 subscription, priced at $30 per month, is tailored for enterprise customers, aligning with Microsoft's vision to empower businesses with AI capabilities.

Conclusion:

Microsoft's proactive approach to forming the Gen AI team underscores its commitment to technological independence and innovation in the AI landscape. By diversifying its AI offerings, the company aims to provide users with advanced features and customization options through initiatives like the Copilot Pro subscription. This strategic shift positions Microsoft at the forefront of developing next-generation AI solutions, aligning with the evolving needs of the digital era.