How Microsoft is Trying to Lessen Its Addiction to OpenAI as AI Costs Soar

Microsoft’s push to put artificial intelligence into its software has hinged almost entirely on OpenAI, the startup Microsoft funded in exchange for the right to use its cutting-edge technology. But as the costs of running advanced AI models rise, Microsoft researchers and product teams are working on a plan B.

In recent weeks, Peter Lee, who oversees Microsoft’s 1,500 AI researchers, directed many of them to develop conversational AI that may not perform as well as OpenAI’s but that is …

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