Microsoft’s Recent Actions Confirm What Everyone Suspected. The Company Isn’t Just OpenAI’s Partner, It’s Also Its Competitor

When OpenAI launched GPT-4 in March 2023, the AI company invited users to subscribe to ChatGPT Plus to access the new model. Users who continued with the free version of the chatbot had to make do with the impressive but less advanced GPT-3.5. However, there was an alternative way to access OpenAI’s latest model without paying–the core of Bing Chat (later renamed Microsoft Copilot) was powered by GPT-4.

As time passed, OpenAI released new models, and both GPT-4o and GPT-4o mini became available in the free version of ChatGPT with certain limitations. Additionally, the company introduced a voice mode in the official app. However, the advanced voice mode and the cutting-edge o1 model remained exclusive to paid ChatGPT customers.

Now, history seems to be repeating itself with OpenAI and Microsoft.

Copilot Gets the Latest From OpenAI (Once Again)

Microsoft recently announced a revamp of Copilot. Its goal is to transform it into a powerful digital assistant integrated into Windows 11, as well as a highly capable tool for users who access it through the mobile app. The new features are notably similar to OpenAI’s chatbot. In fact, Microsoft has confirmed that they’re based on the most cutting-edge models from the AI startup.

Microsoft hasn’t provided specific details about which models drive the new functionalities on Copilot. However, the company told TechCrunch that it has modified “the latest models from OpenAI.” This suggests that the updated Copilot includes both GPT-4o and o1. Once again, and thanks to their billion-dollar deal, the tech giant is incorporating the latest OpenAI technology into its own products.

One of Copilot’s new features is Copilot Voice, which resembles OpenAI’s advanced voice model by allowing natural speech interactions and interruptions. Copilot Voice can capture the user’s tone of voice during conversations and respond accordingly. It also offers four voice options for users to choose from.

Interestingly, Microsoft has started rolling out Copilot Voice in the U.S., Australia, Canada, New Zealand, and the United Kingdom for free. The company is also launching Copilot Vision, a system that promises to provide real-time insight into what users see (i.e., the computer screen) to inquire about the content.

The latest Copilot model also includes Think Deeper, an option designed to “reason” and provide more relevant answers to complex questions. The system will take some time to respond and will be limited to Copilot Pro users. Does this sound familiar? You might be thinking of OpenAI’s o1. Microsoft hasn’t disclosed exactly which OpenAI model this experimental functionality is based on, but everything seems to point to o1.

With its latest features, Microsoft Copilot is positioned as a competitor to ChatGPT. Users who want to access advanced models, use vision functions, converse in natural language with a Her-style voice assistant, or receive easy answers can opt for either of the two. However, this could lead to fewer users and direct subscribers for OpenAI.

Business-wise, the situation is much more complex. Rumors suggest that OpenAI is seeking more funding to remain at the forefront of the AI industry and is considering abandoning its altruistic mission entirely. Meanwhile, Microsoft has the financial resources to invest in other AI companies like Mistral AI and absorb much of Inflection AI’s talent, including its co-founder, Mustafa Suleyman.

Suleyman’s appointment as CEO of Microsoft AI, a new division of the tech giant dedicated exclusively to AI, didn’t go unnoticed in the industry. Rumors surfaced shortly after this move that Microsoft CEO Satya Nadella’s team was working on a large language model equivalent to GPT-4 called MAI-1. Microsoft seems determined not to put all its eggs in one basket.

In fact, Microsoft is making the most of its partnership with OpenAI while also investing in side projects to solidify its position as a leader in the AI industry. OpenAI, in turn, is increasingly reliant on Microsoft, which is evident from the initial $1 billion investment Microsoft made in the AI startup.

In need of additional funding, OpenAI CEO Sam Altman agreed to partner with Microsoft, establishing Azure as the company’s “exclusive cloud provider” for the supercomputers used to train and run its models. Simultaneously, Microsoft became the “preferred partner” for marketing Altman’s AI products.

Image | Microsoft | OpenAI

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