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Microsoft and OpenAI: Collaboration or Conflict of Interest

Microsoft and OpenAI have been collaborating since 2019, when the tech giant invested $1 billion in the artificial intelligence research lab. Since then, the partnership has expanded to include multiple projects, such as building supercomputers, developing AI-powered products, and integrating OpenAI’s models into Microsoft’s platforms. However, the relationship between the two entities has also raised some questions about the potential conflicts of interest, especially after Microsoft hired Sam Altman, the former CEO of OpenAI, to lead a new advanced AI research team.

Microsoft and OpenAI: Collaboration or Conflict of Interest | The Business Anecdote

OpenAI's Commitment

OpenAI is a non-profit research organization that aims to create artificial general intelligence (AGI), a form of AI that can perform any intellectual task that humans can. The ultimate goal of OpenAI is to ensure that AGI is aligned with human values and can benefit all of humanity. To achieve this vision, OpenAI has adopted a set of principles, such as transparency, safety, and social good. OpenAI also claims to be independent from any corporate or governmental influence, and to share its research and technology with the public. However, OpenAI's non-profit structure and commitment to open collaboration have been called into question in light of Microsoft's significant financial involvement which has given them a 49% stake in OpenAI.


Conflict of Interest or Collaboration?

Microsoft and OpenAI have been working together on various aspects of AI research and development. Some of the highlights of their partnership include:


- In 2019, Microsoft invested $1 billion in OpenAI to support its mission of creating AGI with widely distributed economic benefits. Microsoft also became the exclusive cloud provider for OpenAI, offering its Azure platform to power OpenAI's workloads.

- In 2020, Microsoft and OpenAI announced the construction of a supercomputer on Azure, which ranked among the top five in the world. The supercomputer was designed to enable OpenAI to train its large-scale AI models, such as ChatGPT, which can generate natural language texts on various topics.

- In 2021, Microsoft invested another $2 billion in OpenAI, increasing its stake to 49%. Microsoft also announced that it would deploy OpenAI's models across its consumer and enterprise products, such as Bing, GitHub, and Azure. One of the products that emerged from this collaboration was GitHub Copilot, a code completion tool that uses ChatGPT to suggest code snippets for developers.


In 2023, the OpenAI Board sacked Sam Altman as their CEO. Altman's departure from OpenAI was abrupt and shrouded in secrecy, with the company citing "not being consistently candid in his communications with the board" as the reason for his termination. Critics have speculated that Altman's firing may have been related to his close ties to Microsoft and his potential for steering OpenAI's research in a direction that aligns with Microsoft's commercial interests.


Consequently, Microsoft hired Sam Altman back a few days after he was sacked by OpenAI. These actions fuelled further concerns, as it places a former OpenAI CEO with deep knowledge of the company's strategies and plans into a position of influence at Microsoft. This raises the possibility that Microsoft could use its access to OpenAI's research and Altman's insights to gain an unfair advantage in the AI market. Although, in all honesty, that was always the plan.

Original photo owned by Rollingstone | Sam Altman

Microsoft's history with Open Source Projects and Companies

While Microsoft's 49% stake in OpenAI could potentially influence the non-profit's research agenda, we need to look at what does history tells us about their involvement with Open Source companies and projects.

In 2018, Microsoft acquired the open source platform called GitHub for around $7.5 billion. GitHub continued running independently as a community. Prior to the acquisition of GitHub, Microsoft was one of its significant users. Microsoft hosted open-source projects and development tools such as .NET Core, Chakra Core, MSBuild, PowerShell, PowerToys, Visual Studio Code, Windows Calculator, Windows Terminal and the bulk of its product documentation.

Microsoft has also acquired and supported many open-source projects, such as Xamarin, VS Code, and Minecraft. To be clear, Microsoft is one of the largest contributors to open-source projects on GitHub, and has joined the Linux Foundation and the Open Source Initiative.


The benefits and challenges of OpenAI and Microsoft's partnership

The partnership between Microsoft and OpenAI has brought some benefits and challenges for both parties, as well as for the broader AI community and society. Some of the benefits are:


- The partnership has enabled OpenAI to access Microsoft's resources, such as computing power, data, and distribution channels, which are essential for advancing its AI research and development. OpenAI has also gained from Microsoft's expertise and experience in building and deploying AI products and services at scale.

- The partnership has allowed Microsoft to leverage OpenAI's cutting-edge AI research and technology, which can enhance its own AI capabilities and offerings. Microsoft has also gained from OpenAI's vision and values, which can inspire its own AI ethics and social responsibility.

- The partnership has contributed to the progress and innovation of the AI field, by creating and sharing new AI models, tools, and applications that can benefit developers, researchers, and users. The partnership has also stimulated the competition and collaboration among other AI players, such as Google, Facebook, and Amazon.


Some of the challenges are:

- The partnership has raised some concerns about the potential conflicts of interest, especially after Microsoft hired Altman and other OpenAI employees. Some critics have questioned whether Microsoft's influence and ownership over OpenAI could compromise OpenAI's independence and principles, such as transparency, safety, and social good. Some have also wondered whether Microsoft's interests and goals could diverge from or clash with OpenAI's mission and vision, such as creating AGI with widely distributed economic benefits.

- The partnership has also posed some risks and challenges for the governance and regulation of AI, especially as the AI models and products become more powerful and pervasive. Some issues that have emerged include the accountability, liability, and quality of the AI outputs, the privacy, security, and consent of the AI users, and the fairness, diversity, and inclusion of the AI impacts. Some have also called for more oversight, standards, and guidelines for the development and deployment of AI, especially for AGI, which could have profound implications for humanity.


Conclusion

The AI community is closely watching the situation with OpenAI and Microsoft, expressing concerns about the potential for Microsoft to exert undue influence over the non-profit organization and its research agenda. OpenAI's board of directors has a responsibility to ensure that the company's mission and values remain intact, even in the face of Microsoft's significant financial involvement.


Transparency and ongoing dialogue between OpenAI, Microsoft, and the AI community are crucial to address these conflict of interest concerns and ensure that OpenAI's research remains aligned with its mission of benefiting all of humanity. Only through open communication and collaboration can the potential risks of Microsoft's involvement be mitigated, and the promise of AI for the public good be realized.


Microsoft and OpenAI have formed a strong and strategic partnership that has enabled them to collaborate on various aspects of AI research and development. It is our view that this relationship between OpenAI and Microsoft is more of a collaboration than a conflict of interest. This doesn't mean there is no conflict of interest, or that, it wouldn't take precedence in the future. It just means history is on the side of Microsoft when it comes to collaborating with Open Source projects.

 

Source

(1) Microsoft and OpenAI extend partnership. https://blogs.microsoft.com/blog/2023/01/23/microsoftandopenaiextendpartnership/.

(2) Come build with us: Microsoft and OpenAI partnership unveils new AI .... https://www.microsoft.com/en-us/microsoft-cloud/blog/2023/11/07/come-build-with-us-microsoft-and-openai-partnership-unveils-new-ai-opportunities/.

(3) Microsoft invests in and partners with OpenAI to support us building .... https://openai.com/blog/microsoft-invests-in-and-partners-with-openai.

(4) Microsoft Strengthens OpenAI Partnership with Further Investment. https://rcpmag.com/articles/2023/01/23/microsoft-strengthens-openai-partnership-with-further-investment.aspx.

(5) Everything you Need to Know About Microsoft and OpenAI’s Partnership .... https://www.ecfdata.com/everything-you-need-to-know-about-microsoft-and-openai-partnership/.

(6) A breakdown of the OpenAI “boardroom coup” that ousted CEO Sam Altman. https://www.msn.com/en-us/money/companies/a-breakdown-of-the-openai-boardroom-coup-that-ousted-ceo-sam-altman/vi-AA1kfCxe.

(7) Microsoft Hires Former OpenAI CEO Sam Altman in Shake-Up of AI Landscape. https://www.msn.com/en-us/money/other/microsoft-hires-former-openai-ceo-sam-altman-in-shake-up-of-ai-landscape/ar-AA1kexvj.

(8) Sam Altman: Ousted OpenAI boss 'committed to ensure firm still thrives' as majority of employees threaten to quit. https://news.sky.com/story/sam-altman-ousted-openai-boss-committed-to-ensure-firm-still-thrives-as-majority-of-employees-threaten-to-quit-13012282.

(9) Sam Altman - Wikipedia. https://en.wikipedia.org/wiki/Sam_Altman.

(10) Read TIME's Interview With OpenAI CEO Sam Altman. https://time.com/6288584/openai-sam-altman-full-interview/.

(11) Who is OpenAI CEO Sam Altman? - The National. https://www.thenationalnews.com/business/technology/2023/05/16/who-is-openai-ceo-sam-altman/.

(12) GitHub - Wikipedia. https://en.wikipedia.org/wiki/GitHub.

(13) Microsoft and open source - Wikipedia. https://en.wikipedia.org/wiki/Microsoft_and_open_source.

(14 Microsoft acquires GitHub - Stories. https://news.microsoft.com/announcement/microsoft-acquires-github/.

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