"Microsoft will slacken its dependence on OpenAI through a new partnership with Anthropic, The Information on Tuesday. The deal will enable Microsoft to embed Anthropic's AI systems into Microsoft 365 (formerly Office) platforms like Excel, PowerPoint, and Word. This marks a turning point for Microsoft, which has otherwise been largely (though not entirely) reliant on OpenAI's technology to power its consumer-facing AI efforts."
"OpenAI, for its part, is reportedly planning to launch its own platform to compete with LinkedIn, which Microsoft owns. The company is also slated to start mass producing its own AI chips in partnership with Broadcom starting next year, which would make it less dependent on Microsoft's Azure for AI model training and inference (when a model is in use and actively making predictions based on user requests)."
Microsoft will pay Anthropic for access to Anthropic's AI models and plans to embed those systems into Microsoft 365 applications such as Excel, PowerPoint, and Word. The partnership is intended to expand AI features across Office platforms and reduce Microsoft's dependence on OpenAI. Microsoft has invested more than $13 billion in OpenAI since 2019 but is recalibrating its relationship amid shifting business priorities. OpenAI plans include launching a LinkedIn competitor and mass-producing AI chips with Broadcom, which could reduce its reliance on Microsoft's Azure. Microsoft is negotiating for a larger stake to secure future access if AGI emerges.
Read at ZDNET
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