Inside Microsoft’s strategic $10bn bet on OpenAI: Parmy Olson

In a strategic manoeuvre to bolster its AI capabilities, Microsoft's CEO Satya Nadella orchestrated a bold $10 billion investment in OpenAI, stirring internal dissent among the company's seasoned researchers. Nadella's foresight, evident in the development of Microsoft's own AI model, MAI-1, reflects his proactive stance against potential threats. With concerns looming over OpenAI's autonomy and disruptive potential, Nadella's diversification strategy underscores Microsoft's resilience amidst evolving technological landscapes.

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By Parmy Olson

When Microsoft Corp. invested more than $10 billion for a chunk of OpenAI, scientists inside its storied research division were rankled about being shoved aside for a newer player from outside the company. Microsoft Research was more than 30 years old and stuffed with esteemed scientists who'd won Turing Awards and Fields Medals, and here was Chief Executive Officer Satya Nadella last summer berating them for falling behind Alphabet Inc.'s Google on AI research. But Nadella wasn't switching his focus from one research team to another. He was doing what he does best: branching out. 

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