Microsoft Outsources AI R&D to OpenAI, Google May Benefit

Microsoft outsources AI development to OpenAI, potentially aiding Google. Investment of up to $13 billion could redefine industry dynamics.

Microsoft has outsourced its AI R&D projects to OpenAI, with Google potentially benefiting from this move. Todd McKinnon, CEO of cybersecurity company Okta, stated in an interview with CNBC that Google is striving to maintain its search engine dominance by avoiding outsourcing R&D.

He also mentioned that Microsoft has outsourced the development of its advanced AI tools and software to OpenAI, which could be advantageous for Google.

McKinnon pointed out that the core technology behind today’s generative AI, the Transformer model, originated from Google. Microsoft’s position in the AI field is at risk of becoming merely advisory. Many of Microsoft’s recent products, such as CoPilot and AI PC, have begun to integrate OpenAI’s technology.

He also noted that Microsoft has invested billions of dollars in OpenAI, with total investments possibly reaching $13 billion. Microsoft previously stated that its investment would

“accelerate AI breakthroughs and ensure these outcomes are widely shared globally.”

McKinnon expressed surprise at this situation, suggesting that it is strange for Microsoft employees to see all the exciting developments coming from OpenAI, making Microsoft seem like a consultancy firm.

However, through investment and collaboration with OpenAI, Microsoft has become a leader in foundational AI models. Meanwhile, Google’s AI projects have faced public skepticism, particularly after the launch of its Gemini project, which negatively impacted its stock price.

McKinnon highlighted that AI development, unlike personal computing and cloud computing, requires massive financial support from major tech giants, a rarity in the tech sector.

He added that the significant investments by tech giants in AI have raised competition concerns, and the potential issues of misinformation generated by AI pose a significant risk for the cybersecurity industry. He anticipates increased regulation, with only the largest and strongest companies being able to control AI effectively.

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Microsoft Outsources AI R&D to OpenAI, Google May Benefit

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