ONE PIECE OF NEWS

📈Microsoft is winning the AI game

A few years back, Microsoft went all-in on generative AI, and guess what? It's been nothing short of a jackpot. With the world embracing generative AI, a data-intensive technology, who better than the second-largest cloud service provider to ride the AI wave?

Their Q3 reports? A killer 29% revenue jump over last year’s Q3 for their cloud services department, partly thanks to generative AI. Considering this is the largest segment of Microsoft’s business, it’s no small feat.

Nestled in the heart of Microsoft's success is its Azure cloud. This tech haven hosts giants like OpenAI and crowd-pleasers like the AI applications of Meta or the open-source community, Hugging Face.

The Billion-Dollar Bet

In early 2023, Microsoft, in a game-changing move, reportedly invested a cool $10 billion in OpenAI. The deal? A 75% cut of OpenAI's profits until their investment's covered, then holding a 49% stake.

With OpenAI now valued at a whooping $80 billion, Microsoft's ROI is a head-turning 300%. The cherry on top: they spiced up their services with OpenAI’s tech, all while barely touching their own R&D budget. Smart, right?

Microsoft 365 Copilot

Circle November 1st, folks. That's when Office apps get the long awaited AI boost in the form of Microsoft 365 Copilot. From drafting in Word to summarizing those endless Teams meetings, this AI assistant will be on it.

Some early testers reported productivity gains and cost savings. Doctors were able to trim 40 minutes off their daily documentation grind with Word drafting clinical notes and companies were buzzing about Security AI Copilot (currently in beta) that promises sharp cybersecurity insights.

Microsoft has priced it at an additional $30 per user per month, on top of the usual Office subscription.

Currently, Microsoft 365 boasts a global user base of 345 million paid seats. In comparison, ChatGPT has 180 million monthly active users. With almost twice the user base, Microsoft has a vast untapped market under its fingertips. If Copilot delivers on its promises, Microsoft currently at $2.5 trillion will be on it’s way to pass $3 trillion in valuation.

So, as we gaze into the tech horizon, it's clear: Microsoft's not just playing the AI game; they're acing it so far. 

However, Google’s warhorns have been blown, they also plan to integrate AI across their products like Drive and Docs soon. Their highly touted ChatGPT competitor Gemini is rumored to blast to the scene before the end of this year spicing up the competition.

ONE MORE THING

OpenAI is rumored to introduce major updates to lure in developers

OpenAI is said to release a new ChatGPT API with memory. This will make it cheaper for companies to create applications by remembering the conversation history of inquiries.

Another update, vision API, would allow developers to build software that can analyze images.

OpenAI is expected to announce these on its first-ever developer conference in San Francisco on November 6.

⌚ If you have one more minute

• 🛍️Amazon offers an AI tool for its advertisers to pretty up their product shots

• 🏛️White House is expected to unveil sweeping AI executive order next week

• 🧠AI ‘breakthrough’: A neural-network-based AI outperforms ChatGPT at a key aspect of human intelligence.

• 📱Google will require Android apps using AI-generated content to add a button to flag or report offensive material.

• 🎶You can create AI generated images for your YouTube Music playlist

AI Art of the day 🎨

The bible as an anime, imagined by Midjourney user u/vanilla_xoxo. Check out the whole collection. Would you watch it?

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That’s it folks!

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