In 2019, Microsoft made a significant move by investing $1 billion in OpenAI, a research organization focused on artificial intelligence. This decision was reportedly made due to concerns about Google’s advancements in AI technology, which were posing a threat to Microsoft’s position in the field.
Details of high-level discussions surrounding this investment have recently come to light through an internal email exchange between Microsoft CTO Kevin Scott, CEO Satya Nadella, and co-founder Bill Gates. The email, titled “Thoughts on OpenAI,” was released as part of the ongoing US Justice Department antitrust case against Google.
The email reveals that Microsoft was lagging behind Google in machine learning scale and had taken six months to replicate Google’s BERT language model. Initially dismissive of OpenAI and Google DeepMind’s AI efforts, Microsoft only began to take notice when the focus shifted to natural language processing models.
Nadella, showing his support for the investment, forwarded Scott’s thoughts on OpenAI to Microsoft CFO Amy Hood. The heavily redacted email thread also indicates Gates’ continued involvement with Microsoft’s relationship with OpenAI since 2016, despite stepping down from the board in 2020 following an investigation into an affair with an employee.
Overall, this email exchange sheds light on the strategic decisions and concerns that drove Microsoft to invest in OpenAI, highlighting the competitive landscape in the AI industry and the steps companies are willing to take to stay ahead in the technological race.
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