Shulou(Shulou.com)11/24 Report--

Betting on AI to make another big move, Microsoft will embed ChatGPT in its family bucket.

The platitudes of artificial intelligence technology finally ushered in a long-lost outbreak in the application field last year.

First, since the beginning of the year, various AI painting tools such as Dall-E have made every ordinary person an artist, and the emergence of ChatGPT at the end of the year has broken people's imagination of the existing capabilities of AI.

As for the explosion of AI tools such as ChatGPT, Google is the most worried, and the happiest is Microsoft, which continues to bet on OpenAI, the parent company behind Dall-E and ChatGPT.

The partnership between Microsoft and OpenAI dates back to 2019, when Microsoft invested $1 billion in OpenAI and provided a full range of cloud services for model training for its products. Now, after four years of investment, Microsoft's bet is finally paying off. There has been a lack of general landing scene artificial intelligence technology, which has been opened by ChatGPT, DALL-E and other products.

At this time, Microsoft also felt that it was time to add another fire to AI and take advantage of the victory to pursue. From the recent developments of Microsoft, we can see that a product iterative movement about the era of artificial intelligence has begun.

| All in AI, Microsoft products will be fully embedded in ChatGPT local time. Microsoft CEO Nadella said at the World Economic Forum in Davos on Tuesday that Microsoft is rapidly promoting the commercialization of OpenAI tools and plans to integrate artificial intelligence tools, including ChatGPT and DALL-E, into all Microsoft products and use them as a platform for other enterprises.

These products include and are not limited to Bing search engine, Office family bucket including Word, PPT, Excel, Azure cloud service, Teams chat program, and so on. Let's take a look at how these products currently integrate with services such as ChatGPT.

Optimizing Bing search engine Google has firmly controlled the global search engine market for a long time. Although Microsoft Bing has been launched for many years, it has been in a minority and marginal state under the suppression of Google.

But ChatGPT's "superpower" shows Bing the possibility of a turnaround. Unlike in the past, showing links directly after search allows users to query the answers themselves, ChatGPT can directly display more complete and personalized answers to search results and attach sources of information, while providing users with more accurate keyword associations and recommendations with the help of a more powerful natural language processing system.

ChatGPT answered about some of the changes that combining with Bing will bring to the user experience. The picture comes from The Information. Microsoft's use of ChatGPT features can help Bing compete with Google's knowledge graph, or will change the way search information is displayed to some extent, thus further changing the profit model of the search engine market in the past.

Microsoft says it will launch the new feature by the end of March at the earliest, but industry insiders say that since there are still inaccurate and discriminatory information in ChatGPT, it is likely to start with Beta testing and a limited number of integration.

Just after it was announced that Bing would launch a ChatGPT version of Azure OpenAI cloud service, Microsoft officially announced on Monday the launch of Azure OpenAI service, which allows enterprises to integrate tools such as DALL-E into their own cloud applications and will soon provide access to ChatGPT.

In November 2021, Microsoft first announced the launch of Azure OpenAI, which allows enterprises and developers to access OpenAI services including GPT-3.5, Codex and DALL-E through REST API. Microsoft has been testing the Azure service for more than a year.

This includes using Azure OpenAI services to support GitHub Copilot, helping to recommend lines of code to developers in a code editor, Power BI using the GPT-3 natural language model to generate formulas and expressions, the upcoming Microsoft Designer application using DALL-E 2 to generate works of art from text prompts, and so on.

Microsoft says users will soon be able to access a fine-tuned version of ChatGPT--GPT-3.5 through the Azure OpenAI service, which has been trained to run reasoning on the Azure AI infrastructure. At present, multinational companies from start-ups such as Moveworks to KPMG are applying the functions of Azure OpenAI services to practices such as customer support, customized services, search, data extraction and classification.

Microsoft says this is part of an ongoing partnership with OpenAI, while Microsoft and OpenAI are working together to carefully evaluate use cases, learn and address potential risks in order to better and more responsibly provide artificial intelligence services.

ChatGPT joins Office in addition to Bing and Azure, Microsoft is also working on integrating OpenAI artificial intelligence tools, including ChatGPT, into a complete set of office suites such as Word, PowerPoint, and Outlook mailboxes. Once effectively integrated, this is likely to change the way more than 1 billion people write and present documents, presentations, and emails in the future.

Over the past year or two, Microsoft has been using more and more artificial intelligence services in its productivity applications. For example, AI algorithm is used in Word and PPT to automatically suggest images and slide subtitles, GPT-3 is used to build AI-driven autocomplete functions, AI is used in Microsoft Teams to improve echo, interrupt and sound effects, Microsoft Editor uses AI to perform spelling check, grammar check and text prediction to improve writing.

According to the latest news, Microsoft has integrated the latest GPT chat robot model (currently ChatGPT, which will soon become GPT-4) into productivity suites such as Word, PowerPoint and Outlook. The latest GPT technology will allow users to retrieve content in a more flexible way and, most importantly, help users generate personalized text quickly. In other words, the use cases of many ChatGPT users are likely to become a new feature of Office in the last month or two.

Pictures from Twitter, for example, when you are sick and want to ask for leave to the company, you just need to type "write a sick email to the team" and Outlook can help you generate a complete and formal email asking for leave. When you write a weekly work report in Word, you only need to write a few keywords. AI only takes a few minutes to help you automatically write a work report that you may have taken hours to write in the past, and you can make adjustments and changes based on it.

It is not clear when Microsoft will officially launch these productivity services that integrate the latest AI technology, but according to Nadella, these efforts are rapidly moving forward within Microsoft, and once done, it will undoubtedly further deepen Microsoft's moat in enterprise office technology.

| with a further investment of US $10 billion, Microsoft is firmly optimistic that OpenAI has been fully supporting the development of OpenAI in recent years since it established a cooperation with OpenAI in 2019. Not only does OpenAI,OpenAI spend about $70 million a year on model training on Microsoft's cloud services, but Microsoft pays for almost all of it.

In return, immediately after OpenAI released GPT-3 in 2020, Microsoft obtained an exclusive license and began to expand its cooperation with OpenAI in various fields, trying to inject artificial intelligence services into Microsoft products. These include the Bing automatic search image suggestion function based on DALL E 2, and the paid service Copilot, which helps developers generate code automatically.

After the popularity of ChatGPT at the end of last year and the rapid breakthrough of millions of users, Microsoft once again saw the revolutionary potential of artificial intelligence technology, so it also non-stop increased its investment in OpenAI, and once again joined other investors to add 10 billion dollars to support the research and development of OpenAI.

After the fundraising, OpenAI will be valued at $29 billion and the deal aims to be completed by the end of 2022, according to documents sent by OpenAI to potential investors in recent weeks outlining its terms. Judging from the terms of the investment disclosed so far, Microsoft will be the biggest beneficiary once OpenAI succeeds.

Microsoft will receive a 75 per cent profit on OpenAI until the investment is recovered, and after Microsoft recovers the investment, the deal will revert to the ownership structure of OpenAI, in which Microsoft holds 49 per cent, other investors hold another 49 per cent, and OpenAI's non-profit parent gets 2 per cent. It is not clear whether the money OpenAI spends on Microsoft's cloud computing division will be included in Microsoft's profits.

Taken from Financial Times, $29 billion is clearly a high valuation for OpenAI, which is not making any profit and is still on a spending spree. But unlike Meta's current massive skepticism about spending a lot of money on meta-universe, the market is generally positive about Microsoft's $10 billion spending, believing that it is likely to be a "bargain", because compared with meta-universe, the explosion of artificial intelligence seems to be just around the corner.

Recently, OpenAI also said on social platforms that it was planning to launch a paid version of ChatGPT and began to explore commercial cash-out models, including the professional version of ChatGPT Professional and monthly subscription services. Although Microsoft's latest $10 billion investors have not yet been officially announced, it is revealed that OpenAI will allow its employees and early investors to sell their shares at a valuation of $29 billion.

| Microsoft still needs to solve some challenges from research to application. Of course, there are still many challenges for tools such as ChatGPT to become commercial in an all-round way.

The first is that accuracy cannot be guaranteed at present. At present, there are still a lot of situations in which incorrect information is presented as facts in ChatGPT. For example, Stackoverflow has publicly stated that it will ban ChatGPT's answers because many of the answers are wrong.

Meta also launched a large scientific language model, Galactica, in November last year, which was originally intended to help researchers sort out information and assist in writing, but it was scolded by users to take it off the shelves only three days after it was launched. Therefore, if Microsoft wants to provide ChatGPT as a service to enterprises and individuals, it must also solve the problem of content untrustworthiness.

In addition, once the service is open, the cost of training and using large-scale models will rise, and there will be a question mark as to whether the economic benefits generated by using Ai tools can cover the operating costs.

However, in Microsoft's view, artificial intelligence is the turning point of the times. Nadella said at the Davos conference that people need tools like ChatGPT to improve productivity in the future, and every Microsoft product in the future will have some of the same artificial intelligence capabilities to completely reinvent the product.

In addition, Microsoft founder Bill Gates also said at the Reddit event last week that he believes that artificial intelligence is the most important and subversive technology next compared to meta-universe and Web3.

By paying attention to Silicon people, you can learn about the latest technological developments in Silicon Valley and the events in the Bay area, and become the most in technology trendsetter.

This article comes from the official account of Wechat: Silicon Man (ID:guixingren123), author: Juny

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