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Microsoft Doubted OpenAI in 2018 Emails
8 May
Summary
- Microsoft executives questioned OpenAI's potential in 2018 emails.
- OpenAI sought $300 million in cloud services from Microsoft.
- Microsoft feared losing OpenAI to competitor Amazon.
In 2018, Microsoft executives harbored doubts about increasing financial support for OpenAI, then a nascent nonprofit research lab. Emails presented in the Musk v. Altman trial revealed internal discussions where Microsoft leaders questioned OpenAI's progress on artificial general intelligence. Visits to the lab did not indicate immediate breakthroughs, and OpenAI's work on AI for video games required substantial computing power.
Microsoft's internal communications from 2017 show concerns that refusing support might lead OpenAI to partner with Amazon, a leading cloud provider at the time. This apprehension emerged despite an earlier agreement where Microsoft provided discounted cloud services to OpenAI, which were consumed at a faster rate than anticipated.
Approximately 18 months after these internal doubts were expressed, Microsoft committed a substantial $1 billion investment. This decision followed OpenAI's establishment of a for-profit division, which offered Microsoft the potential for significant financial returns. These details underscore the complex and evolving nature of the partnership between the tech giant and the AI research firm.
