ChatGPT – “Weapon” to usurp Google from Microsoft genius Satya Nadella

Tram Ho

Hidden giant

Following technology news in the past few months, the two most prominent keywords are “OpenAI” and “ChatGPT”. Many lively discussions took place, analyzing from its birth, founder’s biography to the future of technology and its ability to “fire people”.

But few people realize that, behind OpenAI and ChatGPT is a “former king” of the technology world, a brand that everyone knows but has almost no outstanding innovation in recent times: Microsoft.

ChatGPT - “Vũ khí” soán ngôi Google của thiên tài Microsoft Satya Nadella - Ảnh 1.

Microsoft discovered the potential early and invested $1 billion in OpenAI in 2019 and $2 billion in 2021, and at the beginning of 2023, Microsoft once again invested another $10 billion in this business, just a few minutes. weeks after laying off more than 10,000 employees globally.

If this deal is successful, a series of partners as well as rivals of Microsoft such as Google and Apple will be at great risk, even though Google is the company that laid the foundation for artificial intelligence.

Satya Nadella ‘s long-term strategy

The story begins in 2019, when Satya Nadella personally approved a 1 billion USD investment in OpenAI, then just an artificial intelligence research lab, and still had no plans to create ChatGPT or tools. draw with AI.

Just over 3 years later, OpenAI’s product has surprised the whole world, a series of leading Western universities have to embark on research on AI and how to control AI applications in academia, especially in “copyright washing”.

According to many experts, the growing artificial intelligence market is similar to the trajectory of a “hockey stick”, with acceleration likely starting with the popularity of ChatGPT.

ChatGPT - “Vũ khí” soán ngôi Google của thiên tài Microsoft Satya Nadella - Ảnh 2.

But Satya Nadella’s moment of genius was when $1 billion invested in 2019 was not just cash, but a cloud computing service package.

This is key to the deal, as the biggest operating fee for any AI business is cloud data storage and algorithmic processing power. And Microsoft is one of the largest cloud service providers in the world.

Therefore, the first deal made Microsoft a strategic partner of OpenAI, and that relationship became closer as ChatGPT grew and needed more processing power. Currently Microsoft Azure is the exclusive service provider for all OpenAI products.

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And the “$10 billion” deal in January can be called the “deal of the century”, because after that, Microsoft will take a 49% stake in OpenAI, in addition, OpenAI will have to spend 75% of the profits to make the deal. return the amount of 10 billion USD.

In the future, Microsoft not only holds shares, but also has the opportunity to “recover” 10 billion USD and at the same time many billion USD when providing cloud data services for OpenAI.

Mutually beneficial cooperation

Why did OpenAI agree to somewhat unfavorable terms from Microsoft?

The first is the huge amount of money that both the founders and OpenAI employees will receive from selling shares to Microsoft. And the second is that ChatGPT is burning a huge amount of money, estimated at 100,000 USD per day (and will increase to 3 billion USD for the whole of 2023) just to keep the system running smoothly, that is not yet the number. Huge salary to retain talent, avoid losing them to competitors.

To quote OpenAI CEO Sam Altman: “We had to find a way to make money on ChatGPT, the operating costs are tearful.”

ChatGPT - “Vũ khí” soán ngôi Google của thiên tài Microsoft Satya Nadella - Ảnh 4.

It can be said that Microsoft and OpenAI have burned billions of dollars to lay the foundation for AI, turning it into a platform on which other businesses can build their own AI systems.

The plan to “usurp the throne” of Google

With the huge amount of data put into ChatGPT, experts gradually realized that this is a “weapon” against Microsoft’s Google.

Google is still at the top of the search market, but this giant has been stagnant for a long time, and Microsoft has quickly brought its plan to take the throne into the next phase: integrating artificial intelligence into Bing search engine.

So far, Bing is just a “copy” of Google, from the interface to the operating principle and monetization model… Bing even became an online joke, when the keyword was searched the most. on Bing is “Google”, many people think that Bing only exists (accounting for 9% of the global market share) because it is the default browser of the Microsoft operating system.

ChatGPT - “Vũ khí” soán ngôi Google của thiên tài Microsoft Satya Nadella - Ảnh 5.

But first, OpenAI and Microsoft need to solve the “cost per search” problem, as each question answered on ChatGPT currently costs a few cents (1 USD = 100 cents) in operating costs, which are more expensive. Google hundreds of times.

Microsoft also needs to come up with a new business model, as Bing is currently “copying” the pay-per-click method from Google, but only one reply per ChatGPT. Many experts think that a “premium” and paid version of ChatGPT will appear.

Things seem to be in Microsoft’s favor as 58% of Google’s current revenue comes from the search engine, making it impossible for the giant to take the risk to change the current model. Meanwhile, Bing only brings in 5% of search revenue, the amount Microsoft is willing to trade to move into the future.

In short, Microsoft is in a race to make OpenAI and ChatGPT the “default” platform of all AI systems in the future, but in the immediate future, it is necessary to solve many conundrums about Operational costs, Remove discriminatory content, and Act in a “humane” manner, without repeating the mistakes of the AI ​​Tay model, which was “alienated” by Twitter users within 24 hours and quickly deleted.

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Source : Genk