Microsoft’s push to put artificial intelligence into its software has hinged almost entirely on OpenAI, the startup Microsoft funded in exchange for the right to use its cutting-edge technology. But as the costs of running advanced AI models rise, Microsoft researchers and product teams are working on a plan B.
In recent weeks, Peter Lee, who oversees Microsoft’s 1,500 researchers, directed many of them to develop conversational AI that may not perform as well as OpenAI’s but that is smaller in size and costs far less to operate, according to a current employee and another person who recently left the company. Microsoft’s product teams are already working on incorporating some of that Microsoft-made AI software, powered by large language models, in existing products, such as a chatbot within Bing search that is similar to OpenAI’s ChatGPT, these people said.