Microsoft launches its own LLMs - here's what that really means

"Microsoft recently released its own large language models - the technology that underlies all generative AI (genAI), from OpenAI's ChatGPT to Google's Gemini, Anthropic and others. Until now, Microsoft has relied on ChatGPT to be Copilot's brains. But with Microsoft and OpenAI fighting about what Microsoft should get from its $13 billion investment in OpenAI, there's been talk about whether Microsoft would eventually develop AI on its own."

"Microsoft has released two models and, for the moment, neither powers Copilot. But it's not unreasonable to see this as an early step by the company to move some or most of its genAI work in-house. Does their release mean Microsoft will completely deep-six its relationship with OpenAI? Was Microsoft's decision to build its own AI models merely a negotiating tactic to get a better deal from OpenAI? Or could it meld its own work with OpenAI's from now on?"

"There aren't yet definitive answers to those questions, but there are plenty of hints. Here's what new models mean for the Microsoft-OpenAI relationship, and the future of AI at Redmond."

Microsoft released its own large language models, the core technology behind generative AI. Until this release, Microsoft relied on OpenAI's ChatGPT to power Copilot. The companies are disputing what Microsoft should receive from its $13 billion investment in OpenAI. Microsoft has launched two models that currently do not power Copilot. The release could signal a move to bring some or most generative AI work in-house. Alternatives include a negotiating tactic to secure better terms with OpenAI or future integration of both companies' technologies. Definitive outcomes remain uncertain, but the release offers important hints for Microsoft's AI strategy.

Read at Computerworld