Microsoft is focused on developing smaller and cheaper artificial intelligence (AI) models in an effort to reduce computing power and financial resources required for AI technology. This move comes as the company aims to enhance its AI products and services while minimizing costs and environmental impact.
The tech giant has established a new team called GenAI, which will specialize in building smaller language models (SLMs). These SLMs aim to offer conversational and generative capabilities similar to OpenAI’s large language models (LLMs), such as GPT, but with much lower hardware requirements. By optimizing the size of AI models, Microsoft aims to match or exceed the functionality of externally sourced models while reducing reliance on third-party providers.
The GenAI team will be integrated into Microsoft’s Azure cloud unit and will be led by corporate vice president Misha Bilenko. To bolster the team, Microsoft has relocated several top developers from its research group to focus on creating smaller language models.
Currently, Microsoft has incorporated various AI capabilities from OpenAI into its offerings. For example, Bing uses OpenAI’s GPT-4 for Copilot, and Bing Image Creator utilizes OpenAI’s Dall-E for image generation. However, relying on externally developed AI models comes with associated fees and a lack of control over the technology itself. Microsoft’s efforts to develop more affordable AI technology could potentially reduce dependence on third-party providers and offer the company greater control over its solutions.
The report on Microsoft’s pursuit of smaller and cheaper AI models comes following OpenAI’s recent launch of the GPT Store, where users can create, share, and sell customized AI models based on OpenAI’s language models. In response, Microsoft has announced plans to offer its own custom AI chatbots tailored to specific needs and topics for Copilot.
In addition, it was reported that the US Department of Justice (DOJ) and the Federal Trade Commission (FTC) are interested in investigating the relationship between OpenAI and Microsoft. The agencies are particularly concerned about the deal’s impact on competition in the AI industry, further highlighting the importance of Microsoft’s efforts to develop its own AI technology.
By focusing on smaller and more affordable AI models, Microsoft aims to offer cost-effective solutions with reduced environmental impact. This strategic shift could reshape the AI industry and provide Microsoft with greater control over its AI offerings.
