Microsoft Establishes Gen AI Team for Compact and Affordable Language Models

Microsoft is establishing a new team, potentially led by Microsoft corporate vice president Misha Bilenko, within its Azure cloud unit. The team’s goal is to develop smaller and more cost-effective artificial intelligence technology, intended to replace OpenAI’s existing offerings. This move reflects Microsoft’s commitment to advancing AI capabilities and making them more accessible.

The Microsoft logo is displayed at the Mobile World Congress 2023 in Barcelona, Spain, on March 2, 2023. In a recent blog post on January 19, 2024, Microsoft revealed that state-backed Russian hackers successfully breached its corporate email system, gaining unauthorized access to accounts belonging to members of the company’s leadership team, as well as cybersecurity and legal personnel.

Microsoft is said to be in the process of creating more compact and cost-effective artificial intelligence technology, aiming to replace its current technology obtained from OpenAI.

According to a report by The Information, Microsoft has established a new team focused on developing conversational AI that demands lower processing power compared to OpenAI’s existing technology.

The report mentions the relocation of several top developers from Microsoft’s research group to this newly formed Gen AI team, emphasizing the company’s strategic emphasis on creating more efficient and cost-effective AI models.

Microsoft is reportedly creating a new team within its Azure cloud unit to develop conversational AI technology that requires lower processing power compared to the current offering from OpenAI. This effort may be led by Microsoft corporate vice president Misha Bilenko, and several top developers have been moved from the research group to join this new team. The focus is on developing smaller and more cost-effective AI models.

Until now, Microsoft has heavily relied on OpenAI for the development of its artificial intelligence products. For instance, Microsoft’s Bing Chat utilizes the GPT-4 language model, and the Bing AI Image Creator employs the Dall-E 3 image generator to create AI images. The move to develop a new AI team within Azure suggests Microsoft’s push to create more cost-effective and smaller AI models in-house.

Microsoft has intensified its focus on Copilot with the introduction of Copilot Pro subscription. This subscription offers users access to Microsoft’s AI-powered Office features, priority access to the latest language models such as OpenAI’s GPT-4 Turbo, the ability to create a customized version of Copilot (Copilot GPT), and enhanced image quality through the Bing AI image generator.

Microsoft has expanded its Copilot offerings with the introduction of Copilot for Microsoft 365, available for enterprise customers, to assist businesses in adopting AI. Additionally, Microsoft has launched Copilot Android and iOS apps, extending the accessibility of this AI tool to mobile platforms.

Microsoft’s Copilot AI assistant is now available in three variants: the free version, which functions like other chatbots; Copilot Pro subscription, priced at $20 per month; and Copilot for Microsoft 365 subscription, costing $30 per month. The subscriptions offer various features, including access to Microsoft’s AI-powered Office features, priority access to the latest language models like OpenAI’s GPT-4 Turbo, and the ability to create a custom version of Copilot (Copilot GPT).

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