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Microsoft and OpenAI Extend Partnership with Multibillion Dollar Investment (January 2023)

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Credibility Rating

4/5
High(4)

High quality. Established institution or organization with editorial oversight and accountability.

Rating inherited from publication venue: Microsoft

This press release announces Microsoft's multibillion-dollar third-phase investment in OpenAI, a pivotal moment in AI capabilities development and deployment that has significant implications for AI governance, safety standards, and the concentration of AI power in a small number of organizations.

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Importance: 62/100press releasenews

Summary

Microsoft announced a multiyear, multibillion-dollar third-phase investment in OpenAI, extending their partnership to accelerate AI research and commercialization. The deal makes Azure OpenAI's exclusive cloud provider and enables deployment of OpenAI models across Microsoft's consumer and enterprise products. Both companies emphasize shared commitments to responsible AI, referencing OpenAI's alignment research and Microsoft's Responsible AI Standard.

Key Points

  • Microsoft commits multibillion-dollar multiyear investment in OpenAI, the third phase following 2019 and 2021 investments.
  • Azure becomes OpenAI's exclusive cloud provider, powering all OpenAI workloads including research, products, and API services.
  • Microsoft will deploy OpenAI models across consumer and enterprise products, including Azure OpenAI Service for developers.
  • Both companies cite shared commitment to AI safety, referencing OpenAI's AI Alignment research and Microsoft's Responsible AI Standard.
  • The partnership has already produced major AI products including GitHub Copilot, DALL·E 2, and ChatGPT.

Cached Content Preview

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Today, we are announcing the third phase of our long-term partnership with OpenAI through a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world.

 This agreement follows our previous investments in 2019 and 2021. It extends our ongoing collaboration across AI supercomputing and research and enables each of us to independently commercialize the resulting advanced AI technologies.

 
 Supercomputing at scale – Microsoft will increase our investments in the development and deployment of specialized supercomputing systems to accelerate OpenAI’s groundbreaking independent AI research. We will also continue to build out Azure’s leading AI infrastructure to help customers build and deploy their AI applications on a global scale.

 New AI-powered experiences – Microsoft will deploy OpenAI’s models across our consumer and enterprise products and introduce new categories of digital experiences built on OpenAI’s technology. This includes Microsoft’s Azure OpenAI Service , which empowers developers to build cutting-edge AI applications through direct access to OpenAI models backed by Azure’s trusted, enterprise-grade capabilities and AI-optimized infrastructure and tools.

 Exclusive cloud provider – As OpenAI’s exclusive cloud provider, Azure will power all OpenAI workloads across research, products and API services.

 
 “We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” said Satya Nadella, Chairman and CEO, Microsoft. “In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications.”

 “ The past three years of our partnership have been great,” said Sam Altman, CEO of OpenAI. “Microsoft shares our values and we are excited to continue our independent research and work toward creating advanced AI that benefits everyone.”

 Since 2016, Microsoft has committed to building Azure into an AI supercomputer for the world, serving as the foundation of our vision to democratize AI as a platform. Through our initial investment and collaboration, Microsoft and OpenAI pushed the frontier of cloud supercomputing technology, announcing our first top-5 supercomputer in 2020, and subsequently constructing multiple AI supercomputing systems at massive scale. OpenAI has used this infrastructure to train its breakthrough models, which are now deployed in Azure to power category-defining AI products like GitHub Copilot, DALL·E 2 and ChatGPT.

 These innovations have captured imaginations and introduced large-scale AI as a powerful, general-purpose technology platform that we believe will create transformative impact at the magnitude of the personal computer, the internet, mobile devices and the cloud.

 Underpinning all of our ef

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