Open AI competes with Microsoft

by time news

2023-08-29 22:19:50

Open AI has launched one of its biggest initiatives yet to monetize the ChatGPT language model. The Californian software developer has now announced the launch of ChatGPT Enterprise, a version of the program that works with artificial intelligence (AI) that is specifically aimed at companies. It is based on GPT-4, the latest generation of Open AI’s AI system. It should allow unlimited access to GPT-4, be up to twice as fast as the usual variant and allow the input of longer texts. Above all, according to Open AI, it should offer more security and privacy.

In many companies, the use of language models such as ChatGPT is viewed with concern. For example, there are fears that employees will enter sensitive data into the systems, which could then leak out, for example if they are used to train the programs. A whole range of companies have imposed restrictions or even bans on the use of AI systems, for example Apple, Samsung or some banks.

Open AI now promises that customers will continue to “own and control” their data with ChatGPT Enterprise. The information would not be used to train the program. ChatGPT Enterprise does not learn from how it is used. Open AI did not provide any specific information on the price of the new business software. It was only said that the price could vary depending on usage and company size.

Open AI is under pressure to make more money

ChatGPT came out last November and its basic version is free. However, after just a few months, Open AI introduced the ChatGPT Plus payment option, which costs $20 a month and, like ChatGPT Enterprise, promises faster answers and unlimited access. There have already been some offers for companies.

Open AI now says its language models are used in more than 80 percent of America’s top 500 companies by revenue. The developer of ChatGPT is under pressure to build revenue streams, especially since its language models are very expensive to operate simply because of the computing power required to do so.

The launch of ChatGPT Enterprise is particularly noteworthy because it puts Open AI in greater competition with its close partner Microsoft. The software giant got into Open AI in 2019 with a stake worth $1 billion at the time, and this year it deepened the alliance with another billion-dollar investment.

Privileged Access

As part of this cooperation, Microsoft will have privileged access to Open AI technologies. The software giant has said it intends to integrate its partner’s programs across its product range, and has made a number of high-profile announcements of such initiatives.

Microsoft only introduced Bing Chat Enterprise in July, an AI chatbot that is based on software from Open AI and is also described in a very similar way to ChatGPT Enterprise. Microsoft also put security first. Information entered into the chatbot would not be stored, would not leak out and would not be used to train the model, it said. Bing Chat Enterprise is included in some variants of the Microsoft 365 office software as an additional function at no extra charge.

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Brad Lightcap, Chief Operating Officer responsible for Open AI’s day-to-day operations, told the Wall Street Journal that he doesn’t necessarily see ChatGPT Enterprise as a competing product to Microsoft’s offering. However, he added: “We are two separate, independent companies and we act as such.”

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