Microsoft and OpenAI were once partners, but now their relationship is becoming increasingly complex.

Recently, the name of OpenAI appeared in the list of competitors in Microsoft's latest annual report. In recent years, the list has also long included tech giants such as Amazon, Apple, Google, and Meta.

Previously, Microsoft and OpenAI had a long-term partnership. In this relationship, Microsoft served as OpenAI's exclusive cloud service provider and used its artificial intelligence models and products for commercial and consumer products.

Their cooperation is also reflected in the fact that Microsoft is OpenAI's largest investor, with reports suggesting that it has invested $13 billion in the company.

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However, the new positioning means that they are entering each other's fields, forming a situation of cooperation + competition.In the market, some companies pay OpenAI to use its models, while others opt for Microsoft's Azure OpenAI service. For those seeking alternatives to ChatGPT, Microsoft's Copilot chatbot is also available through the Bing search engine and the Windows operating system.

Cooperation and Competition

In 2019, Microsoft began collaborating with OpenAI, with the former investing $1 billion in the latter.

Since then, Microsoft has continued to increase its investment, pouring an additional $2 billion in the following years. In January 2023, Microsoft pledged to invest up to $10 billion in OpenAI over the next several years, signaling a further deepening of the relationship between the two companies.

Microsoft's Azure platform not only supports OpenAI's workloads but also accelerates OpenAI's research by increasing investment in dedicated supercomputing systems.In addition to this, Microsoft has utilized OpenAI's models in some consumer and enterprise products. For instance, in the Bing search engine and the Windows operating system, a chatbot based on ChatGPT called Copilot has been integrated.

However, as both parties rapidly advance in the field of AI, the competitive relationship has become increasingly evident. In Microsoft's latest annual report, OpenAI was listed as one of the competitors for the first time, especially in the areas of search and news advertising.

This move indicates that although the two companies maintain a close cooperative relationship, their competition is inevitable.

Microsoft pointed out in the report that its AI products not only compete with large technology companies such as Amazon and Google but also with emerging competitors like Anthropic and OpenAI, as well as other open-source products.

Especially in the search and news advertising business, Microsoft directly lists OpenAI as one of the competitors, side by side with Google.SearchGPT: The Potential to Disrupt the Search Industry

OpenAI has recently officially announced its entry into the search market with the launch of an AI-driven search engine called SearchGPT. This search engine is still in its prototype phase and requires users to join a waiting list. It has real-time access to information on the internet, aiming to provide users with a more intelligent and organized search experience.

The interface of SearchGPT begins with a large text box, asking users, "What are you searching for?" Unlike traditional search engines, SearchGPT does not only return a list of links but also attempts to organize and understand the information.

For example, when searching for music festivals, SearchGPT will first summarize its findings, then provide a brief description of each event, along with relevant links.

Users can ask follow-up questions, and SearchGPT will continue the conversation based on the search context. Additionally, SearchGPT also offers a "visual answers" feature, which may include AI-generated videos and related images.Currently, SearchGPT is still in its prototype phase and is only open to 10,000 test users. This service is powered by the GPT-4 series models, and currently, OpenAI and third-party partners are advancing cooperation to build search results using direct content sources.

OpenAI hopes that the search function can eventually be integrated into ChatGPT.

The launch of SearchGPT may have a profound impact on the search industry. For traditional search engines such as Google, this represents a significant challenge. To counter the threat of users potentially shifting to competitive products that offer relevant tools, Google has already added AI capabilities to its search engine.

In addition, the emergence of SearchGPT also puts OpenAI in more direct competition with the startup company Perplexity.

In response to these concerns, OpenAI emphasizes that it has adopted a different approach. The company stated to the media, "SearchGPT was developed in cooperation with several news partners, including the owners of The Wall Street Journal, Associated Press, and Vox Media."At the same time, publishers will be able to "manage their presentation in the OpenAI search functionality" and can opt out of having their content used to train OpenAI's models, but it will still be displayed in searches.

The emergence of SearchGPT may mean that content creators and publishers need to readjust their content optimization strategies. Traditionally, content creators have optimized for search engines, and SearchGPT may change this pattern.

The relationship between Microsoft and OpenAI reflects the complexity and dynamics of the AI industry. The cooperation between the two companies has made important contributions to the development of AI technology, and their competition has driven innovation and progress.

With the emergence of new technologies such as SearchGPT, the search and AI industries may face significant changes.

How the development of AI technology will reshape the search industry in the future, and how the relationship between Microsoft and OpenAI will evolve, remains to be seen.