Microsoft's Landmark Deal With OpenAI Shows That ChatGPT Is Going To Be The Defining Technology Of 2023

From big tech companies to venture capitalists to ordinary investors, everyone wants to join the chatgpt buzz.
How generative AI will change our lives remains to be seen, but the technology is here to stay.
Microsoft's deal with OpenAI sets the pace, and everyone should have it.

ChatGPT revolutionized the technology world in just a few months.

The viral success of the chatbot developed by OpenAI has caused quite a stir in the tech industry. While Google has moved quickly to address the threat ChatGPT poses to its core search business, venture capitalists are betting big on startups. By 2022, investors have committed at least $1.37 billion to mostly early-stage generative AI startups. According to Pitchbook, that's about the same investment as the last five years in the market combined.

But a sure sign that ChatGPT is setting the pace and dominating the tech industry for at least the next year is the success of OpenAI and its $10 billion partnership with Microsoft to bring artificial intelligence to products like the Bing search engine and Microsoft Office. Of course, Microsoft is wasting no time and is already rolling out an OpenAI-powered conversation recording and action suggestion service for the Microsoft Teams app.

Wedbush analyst Dan Ives said in a note to clients: "Microsoft is prepared to work with OpenAI, a breakthrough technology fully integrated into MSFT, in the next decade. Nadella will not repeat the same mistakes and this strategic investment is a smart move". poker in the global AI arms race. We believe in it."

This means that while it remains to be seen how this technology will change our lives in the coming months, experts are confident that ChatGPT and similar technologies are here to stay, not just a fad.

"We believe we are on the cusp of the next paradigm shift: the information and knowledge economy defined by artificial intelligence," venture capitalists at Bessemer Venture Partners wrote in a recent blog post.

Why is this ChatGPT frequency generator so popular now?

It's important to note that nothing about ChatGPT or the generative AI is particularly new or innovative. Yan Likun, Facebook's chief artificial intelligence scientist, said recently: "It's not revolutionary, even if it's popular.

In other words, the real innovation of OpenAI was taking existing AI technology and making it simple and accessible to everyone.

"The way you create a user interface and expose the technology in a meaningful way and allow it to be mundane or formal—a lot of engineering is unique, and that's where the technology shines," Matt Mead said. Director of Modern Company Technology SPR- Technical Director

As the underlying technology becomes more accessible to developers, we'll see a variety of new tools emerge that will change the way we work, find information, and interact with services like healthcare. A new generation of startups will be born with the increasing availability of computing power and advances in artificial intelligence itself.

"As we can improve the architecture, the cost of chips and computation is coming down, and we're getting more efficient, we're able to build more informed models, and a mix of growth vectors is happening," Talia Goldberg. , a partner at Bessemer Venture Partners, said at the same time.

Microsoft's partnership with OpenAI is just the beginning of what's possible with generative AI.

Microsoft's collaboration with OpenAI offers some clues as to where the technology might go next. First, you are ready to interrupt the search experience.

Nowadays, when we search for information on Google, we have many options and we can choose what we think is the best. But when you query ChatGPT, it returns a specific response. Microsoft hasn't been able to break Google's lead in search, but with artificial intelligence technology, Bing's search engine can really compete.

It's something entrepreneurs look closely at when choosing which companies to invest in, Goldberg said.

"It's really positioned to try to offer a very different and transformative search experience, and it's now competing on a different vector than Google," he said. "And then there are a number of other companies that we think are doing very good things."

Beyond research, Microsoft plans to invest in OpenAI, integrating the technology into products like Excel, Azure and Copilot, GitHub's AI programming assistant. Some analysts see the opportunity to offer cloud infrastructure as a service that other companies can buy and use, similar to how they sell cloud infrastructure services.

That's one reason there are more commercial uses for generative AI than consumer uses for the foreseeable future, according to Mark Shmulik, an analyst at Bernstein.

For example, ChatGPT has the potential to change the way people code and manage engineering teams because fewer engineers can be required to write code. For example, ChatGPT can generate a code base that actual engineers use and customize to arrive at the final product, he says.

Another example is the opportunity to use the advertising industry to bypass some of the work done by large and expensive advertising agencies, Shmulik said.

We'll see more of this technology eventually, and Microsoft may have continued with its OpenAI partnership, but many other players are following suit, experts say.

"Microsoft has been honest and very open about its relationship with OpenAI," Goldberg said. But they're certainly not the only big players involved in the burgeoning startup ecosystem here.

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