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OpenAI Attracts Microsoft Clients, Intensifying Partner Tensions

Amgen Inc., a pharmaceutical company, stated last spring that it will purchase Microsoft Corp.’s Copilot AI assistant for 20,000 workers. In three different case studies, Microsoft highlighted its new Copilot client, which was a timely affirmation of the software company’s multibillion-dollar wager in generative artificial intelligence.

Thirteen months later, Amgen staff members are utilizing ChatGPT, a competing application from OpenAI.

Earlier this year, Amgen increased its usage of ChatGPT after observing the advancements in the technology and learning from staff members that it aided in duties like research and scientific document summarization.

“OpenAI has done a tremendous job making their product fun to use,” said Senior Vice President Sean Bruich. Copilot is still a “pretty important tool,” he added, but more so for use with Microsoft products such as Outlook or Teams.

OpenAI’s partner and largest investor are experiencing indigestion due to its emerging dominance in the enterprise sector. At a time when they are under pressure to deliver Copilot into as many customers’ hands as possible, Microsoft salesmen report being taken off guard. The already tense relationship between OpenAI and Microsoft is being made more difficult by the behind-the-scenes conflict. Microsoft has supported competing AI firms, begun developing its own AI models, and is refusing to approve its partner’s reorganization plan since spending over $14 billion in OpenAI.

In addition to signing agreements with competing cloud computing partners, OpenAI has devoted the majority of the last two years on developing a range of premium subscription services for people, companies, and educational institutions. The AI coding helper Windsurf, which rivals Microsoft’s GitHub Copilot, was just agreed to be acquired by the firm.

Although it’s uncertain if OpenAI’s momentum with businesses will last, the firm recently said that it had 3 million paying business customers, a 50% increase from only a few months ago. According to a Microsoft representative, 70% of Fortune 500 companies use Copilot, and the number of paying users has quadrupled since this time last year.

According to Jason Wong, an analyst at Gartner, a lot of businesses are still evaluating Copilot with very few staff members, which gives different software providers an opportunity to get clients. However, he claimed that OpenAI and Microsoft are currently engaged in “sort of a showdown.” Conversations with almost two dozen consumers and salespeople—many of whom were Microsoft employees—formed the basis of this narrative. To talk openly about the rivalry between Microsoft and OpenAI, the majority of these individuals requested anonymity.

In essence, both businesses are making the same pitch: AI helpers that can take care of laborious duties like writing and research and data analysis, thereby freeing up office staff to work on more difficult projects. According to those familiar with the matter, Microsoft’s salesforce has found it difficult to distinguish Copilot from the far more well-known ChatGPT since the two chatbots are mostly built on the same OpenAI models. Microsoft’s head of workplace AI projects, Jared Spataro, said that “awareness in the consumer space doesn’t necessarily translate into fit for use in the commercial space” when asked about ChatGPT’s popularity.

Taking the greatest technology available and refining it for corporate usage is Microsoft’s “sweet spot,” he continued. Customers’ need for direct access to the newest knowledge and technology is helping OpenAI, according to a spokeswoman for the business. Theoretically, Microsoft should benefit from its widespread presence. Workplaces are dominated by the Windows operating system, and the company is integrating AI into the most popular productivity tool suite globally.

Also read: Viksit Workforce for a Viksit Bharat

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