Microsoft’s AI Odyssey: ChatGPT Paves the Way for Expanded AI Frontiers

Ira Singh
Khabar Khabaron Ki,18 Mar’24

New Delhi. In a strategic move to bolster its AI capabilities, Microsoft Corporation has announced a significant expansion of its artificial intelligence endeavours, leveraging the success of its ChatGPT platform. With the global demand for AI-driven solutions skyrocketing, Microsoft aims to consolidate its position as a leader in the AI landscape.

Since the launch of OpenAI’s ChatGPT on Nov 30, 2022, Microsoft has added nearly $1.3 trillion to its market value, approximately Meta’s total market cap. After Microsoft posted blowout earnings in January, CEO Satya Nadela said, “We’ve moved from talking about AI to applying AI at scale. Microsoft is speedily integrating AI across the tech stack: From cloud computing platform Azure to chatbot ‘Copilot’ to Microsoft 365 apps like Word and Excel.

After chip maker Nvidia, Microsoft has been the biggest beneficiary of the AI-fuelled stock market rally. The Redmond-based behemoth recently unseated. Apple is the world’s most-valued company, crossing the $3 trillion milestone.

Microsoft’s stock is rallying on the hope that the AI boom will translate into a surge in revenue and profit for its software business, riding on its over $10 billion investment in OpenAI. Will the company maintain this momentum? Analysts say Microsoft’s strategic partnership and investment in OpenAI means the tech major will keep its lead in the AI revolution.

“Our key partner in this is OpenAI. This is probably one of the more unique relationships in business and technology. They compete with us. There are times when we compete with them. A company executive said, “Still, we’re working successfully together,”. He likened the OpenAI arrangement to those with Intel and SAP. “Whether it’s an Intel partnership that kicked off the PC revolution and kept us together for a long time whether it’s the engagement we have with our big OEMs(Original Equipment Manufacturers). Even with SAP(System Analysis Programme Development), which has many of the same attributes from a partnering and competition standpoint, we compete with SAP, we partner with SAP,” he added.

Senior Microsoft leadership stressed the company’s mission of ‘AI for all’ at a recent presentation for the media here. “It’s not just that we are making these advancements and that is funnelling into our products, but we are creating platforms so that other people can build with those technologies as well,” said Microsoft VP Ashley Llorens, who is also an adviser to the US President on AI.

Microsoft’s ‘inclusive tech lab’ has developed ‘Seeing AI’, a camera app that describes the world around for the visually impaired. “As someone who’s blind myself,AI has transformed my life,” Microsoft Seeing AI founder & lead Saqib Shaikh reportedly said. “We’ve had the app available on iOS for a while. But bringing it to Android means that while we are chasing high-end capabilities and advanced technology, we also want to make sure that it’s available to the huge number of people around the world who could benefit,” he further emphasised.

ChatGPT a groundbreaking AI language model developed by Microsoft, has garnered widespread acclaim for its natural language processing capabilities. Reaping cutting-edge deep learning techniques as leverage, ChatGPT has revolutionized various sectors, including customer service, content generation, and virtual assistance.

Building upon the success of ChatGPT, Microsoft is now scaling up its AI initiatives across multiple fronts. This expansion encompasses research and development, strategic partnerships, and innovative applications of AI technology.

On AI regulation, Microsoft’s chief ‘Responsible AI’ officer Natasha Crampton said: “Regulations in the (AI) space need to focus on the outcomes that we need to achieve, the societal values that we need to uphold, and allow sufficient flexibility in how we achieve those goals- so focusing on the what and giving flexibility on the how.” The cloud segment, which includes Azure, generated 46% of Microsoft’s total operating income in 2023, up from about 27% in 2016. “More than half of Fortune 500 companies are using Azure AI,” John Montgomery, corporate VP, of Azure AI, said.

India, meanwhile, will have its third ‘Microsoft Garage’ in Noida, which is slated to be operational by June. The Garage, a programme promoting a culture of experimentation and innovation, is functional in Bengaluru and Hyderabad.

The optimism surrounding Microsoft’s AI prospects is underscored by the belief that the burgeoning AI market presents a lucrative opportunity for the company to capitalize on. With AI permeating various industries and transforming business operations, Microsoft’s robust investment in OpenAI is considered a strategic move to secure a competitive advantage in this rapidly evolving landscape.

Analysts anticipate that Microsoft’s collaboration with OpenAI will yield tangible revenue benefits. By integrating OpenAI’s advanced AI capabilities into its software offerings, Microsoft is poised to deliver enhanced value to customers while unlocking new revenue streams.