Microsoft Ventures Beyond OpenAI
The technology behemoth Microsoft, a staunch supporter of ChatGPT-parent OpenAI, has raised eyebrows in the tech world by enlisting the expertise of two founders from a rival firm. Ark Invest’s “chief futurist” Brett Winton believes that this move by Microsoft signifies a strategic effort to diversify its OpenAI risk.
The Infusion of Inflection AI Founders
In an unexpected twist, Microsoft has brought on board Mustafa Suleyman and Karén Simonyan, co-founders of Inflection AI, a move that has sparked interest and speculation within the industry. The duo is set to spearhead efforts in a groundbreaking new division at Microsoft, amalgamating consumer AI initiatives along with Copilot, Bing, and Edge.
Of note, Mustafa Suleyman, a co-founder of DeepMind (acquired by Google in 2014), will serve as the Executive Vice President and CEO of Microsoft AI, reporting directly to CEO Satya Nadella. Meanwhile, Karén Simonyan will take on the crucial role of chief scientist within their newly designated division.
A Relationship Steeped in History
This latest move by Microsoft comes on the heels of their history with Inflection AI. Nearly a year ago, Microsoft led a substantial $1.3 billion funding endeavor for the startup, ushering in a new era of collaboration. During this funding period, Inflection AI outlined its bold objective to establish the most extensive AI cluster globally, leveraging 22,000 Nvidia H100 GPUs.
In May 2023, Inflection AI made waves with the unveiling of their AI chatbot named “Pi,” designed to offer personalized conversations and emotional support to users. This innovation set them apart in a landscape populated by leading chatbots like OpenAI’s ChatGPT, Google Bard (renamed Gemini), and Bing AI.
Diversification in Action: Microsoft’s Strategic Moves
The recent integration of Inflection AI founders into Microsoft’s ecosystem follows reports of another strategic investment by Microsoft in a rival of OpenAI, Mistral AI, a burgeoning player in the French AI market. Microsoft’s investment of $16.3 million in Mistral AI is poised to convert into equity in the company’s forthcoming funding round, signaling a clear intent to diversify their AI portfolio.
However, Microsoft’s existing 49% ownership stake in OpenAI adds a layer of complexity to their investment in Mistral AI, underscoring the delicate balancing act that big tech companies must navigate in a rapidly evolving landscape.
