Microsoft officially recognizes OpenAI as a competitor in the field of AI and search technologies

The relationship between Microsoft and OpenAI has officially become more complex. Microsoft added the artificial intelligence startup to its list of competitors in its latest annual report. This list has included Amazon, Apple, Google and Meta✴ over the years – companies with significantly larger capitalizations compared to OpenAI.

Image source: CNBC

Microsoft has a long-term partnership with OpenAI. It serves as its exclusive cloud provider and uses its AI models in its products for the commercial and consumer markets. Microsoft is also OpenAI’s largest investor. The Redmond giant has invested $13 billion in a startup developing artificial intelligence technologies, writes CNBC. However, OpenAI’s appearance on Microsoft’s official list of competitors means that someone has finally crossed someone else’s path.

In its report, Microsoft listed OpenAI, maker of the ChatGPT chatbot, as a competitor in its AI offerings and in search and news advertising. Last week, OpenAI announced a prototype search engine called SearchGPT.

Some companies work directly with OpenAI to gain access to the capabilities of its AI models. Others use Microsoft’s Azure OpenAI service. For those looking for an alternative to ChatGPT, Microsoft’s Copilot chatbot is also available through the Bing search engine and on Windows operating systems.

An OpenAI spokesperson told CNBC that nothing has changed between the two companies, and that their partnership was established with the understanding that sooner or later they would become competitors. He added that Microsoft remains a reliable partner of OpenAI.

Microsoft CEO Satya Nadella and OpenAI CEO Sam Altman maintain friendly relations. Previously, Nadella was shocked that Altman was kicked out of the company, to which he subsequently returned.

«One of the things I love about Sam is that he calls me every day and says: I need more, more, more ideas,” Nadella shared in a recent interview with The New York Times.