Tech

Microsoft is trying to reduce its reliance on OpenAI by developing a cheaper, less powerful AI model, report says

Satya Nadella
Microsoft CEO Satya Nadella speaks at the launch of the company's Bing AI search tool Jason Redmond/AFP/Getty Images
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Microsoft's partnership with OpenAI has given the company a new lease of life.

The surprise popularity of the company's chatbot, ChatGPT, lit a fire under one of the tech giant's oldest rivals — Google — and sparked an ongoing AI arms race in the tech world.

However, The Information reported that Microsoft was trying to reduce its reliance on the AI lab. The decision is largely motivated by the spiraling costs of running advanced AI models, the publication said.

One current employee and another ex-worker who recently left the company told The Information that an executive who oversees 1,500 researchers at Microsoft instructed some of them to develop an in-house conversational AI.

The company wants its in-house large language models to be cheaper and smaller than OpenAI's, even if this means they don't perform as well, the people told The Information.

Product teams were already working on incorporating the company's in-house AI programs into products such as Bing Chat, the people added.

Representatives for OpenAI and Microsoft did not immediately respond to Insider's request for comment, made outside normal working hours.

Microsoft hasn't been shy about its partnership with OpenAI. In 2019, the company invested $1 billion into the ChatGPT maker and reportedly put a further $10 billion toward the company after the release of the AI-powered chatbot.

The tech giant has incorporated the AI lab's tech into flagship products, including its search engine, Bing.

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Beatrice Nolan was a tech reporter on the business news team in the UK. She joined Insider in January 2022 as a fellow on Business Insider's careers desk. Beatrice covered tech and the future of work, with a focus on artificial intelligence. Some of her stories and early experiments with ChatGPT are widely cited. Beatrice has also discussed her work covering AI trends on panels and radio shows, including NPR.She was based in Business Insider's London office and graduated from the University of  York with a bachelor's degree in English.Featured Articles:Artists say AI image generators are copying their style to make thousands of new images — and it's completely out of their control.ChatGPT was a black swan eventFinland is the world's happiest country, but Finns say we're confusing happiness for something elseThe world is splitting between those who use ChatGPT to get better, smarter, richer — and everyone elseThis man used AI to write and illustrate a children's book in one weekend. He wasn't prepared for the backlash.ChatGPT has only been around for 2 months and is causing untold chaosTwo professors who say they caught students cheating on essays with ChatGPT explain why AI plagiarism can be hard to proveChatGPT wrote college application essays. Admissions professionals said they passed for essays written by students but wouldn't have a chance at any top colleges.College professors are considering creative ways to stop students from using AI to cheatChatGPT wrote my cover letters. Here's how recruiters responded.