The Big Take looks at how Microsoft have developed its AI technology and has cornered the emerging software market. Bloomberg’s Ed Ludlow reports.
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Transcript
The topic of today’s big take is also Microsoft and it’s big bet on AI and how it just kind of leapfrogged over Google and no one kind of knew about it until now yeah I mean that is the framing of the big take you know this time last
Year we were talking about the new Top Gun film and if we were talking about artificial intelligence we were probably doing it in the context of Google and the work that Google was doing in research and what the big take does it unpacks the kind of behind the scenes
Journey that Microsoft took starting probably in 2019 when it started serious investment into open AI through product development 2020 2021 and we all know the story since November it’s LeapFrog Google but what it’s done is commercialized the technology offered it into the real world through integration with existing Microsoft software and
We’ve covered those stories daily here on the startup but it’s definitely worth a read the big take Ed it looks like Microsoft may be on Pace to close at a record high why why is it taking the market so long to figure this out and what is the
Connection into open Ai and what is the connection into the rest of the AI landscape you talk about the fact that the Microsoft’s been doing this quietly it’s got some pretty sizable Stakes it has so you that there are varying estimates out there of what commercializing open ai’s large language
Models and integrating them in software looks like on the top line but it’s in the tens of billions of dollars of added Revenue in the years to come and and that’s outlined in the big take everything has happened very quickly um the the Market’s response here today is fascinating the gains in Microsoft
Are not to the level of Nvidia for example because Nvidia was a real terms beneficiary in terms of people buying up gpus because the gpus are needed for the compute part of building and training large language models but go back to that commercial aspect you know Google
Was always so risk-averse of taking its research focused development of large language models and putting it into their sacred commercial products which is Google search Microsoft did it and in answering your question about the Market’s response the market also recognizes that Microsoft’s actions induced a response in alphabet and
Google who had to move quickly and declare a code red bringing the work that they done in large language and rolling out generative AI tools across search and also there are other online Suite of software tools as well Ed do we know where the AI glass what am I talking about telescope
Is going to go to next now you mean Google Glass no I mean like literally like we have Nvidia and then there were other companies announced where’s the spotlight Go full next thank you tell us okay Google Glass so go back to go back to what Reid Hoffman was just
Talking about in that clip the next big technology company the question that the big take pose is is where the open AI becomes that company on its own two feet or should we think about open AI as just a very well-funded subsidiary of Microsoft you know they’ve invested uh
21 billion in that company so far approximately according to sources but they’ve kind of ingested it provided all the compute so that’s what the way that I’d frame it is it open AI or is it Microsoft Google or someone else
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