Microsoft is taking steps to diversify the AI powering its flagship product, Microsoft 365 Copilot. While OpenAI’s GPT-4 model has been a cornerstone of the AI assistant since its launch in March 2023, Microsoft is now integrating internal and third-party AI models, including its proprietary Phi-4, to reduce costs and improve efficiency. This move reflects Microsoft’s broader strategy to lessen reliance on OpenAI, its long-time partner, as it looks to offer faster, more cost-effective solutions to enterprise customers.
The shift is driven by concerns over the high costs and slower speeds associated with OpenAI’s technology for enterprise users. A company spokesperson confirmed that OpenAI remains a partner for advanced models but emphasised that Microsoft customises and incorporates a range of AI models depending on the product. Beyond its collaboration with OpenAI, Microsoft is also customising open-weight models to make its services more accessible and affordable, with potential cost savings for customers.
Microsoft’s approach mirrors similar changes in its other business units. For example, GitHub, acquired by Microsoft in 2018, has started incorporating AI models from Anthropic and Google as alternatives to OpenAI’s offerings. These efforts align with Microsoft’s goal of demonstrating the return on investment for its AI tools, particularly as some enterprises remain cautious about adopting 365 Copilot due to concerns over pricing and utility.
Despite these challenges, Microsoft reports growing adoption of 365 Copilot. The company states that 70% of Fortune 500 companies are using the AI assistant, and analysts predict that more than 10 million users will adopt it this year. As Microsoft continues refining its AI technology, leaders like CEO Satya Nadella are keeping a close watch, underscoring the company’s commitment to innovation in enterprise AI.
OpenAI has announced internal testing of its latest reasoning models, o3 and o3 mini, which aim to tackle complex problems more effectively than their predecessors. The o3 mini model is expected to launch by January, with the full o3 model to follow. These developments signal increased competition with rivals like Google, which recently released its second-generation Gemini AI model.
OpenAI’s advancements build on its earlier o1 models, released in September, which demonstrated improved reasoning in science, coding, and mathematics. The company is inviting external researchers to test the new o3 models before public release.
The announcement follows OpenAI’s $6.6 billion funding round in October, highlighting its growing influence in the generative AI market. As competition intensifies, both OpenAI and Google aim to push the boundaries of AI technology.
OpenAI has introduced a new way to access its popular ChatGPT AI by phone. Users in the United States can now call 1-800-CHATGPT to speak with ChatGPT for up to 15 minutes per month at no cost. This innovative feature is powered by OpenAI’s Realtime API and marks a move towards making AI more approachable for everyday users.
For those outside the US, OpenAI has expanded access via WhatsApp, allowing global users to interact with ChatGPT through text. The initiative is part of OpenAI’s effort to offer a simplified version of ChatGPT, providing a ‘low-cost way’ to try the service through familiar communication channels.
OpenAI has reassured users that calls will not be used to train its models, distinguishing its approach from similar past services like Google’s now-defunct GOOG-411. With this launch, OpenAI continues to bridge the gap between technology and accessibility, making conversational AI more reachable than ever.
At the NeurIPS conference in Vancouver, Ilya Sutskever, co-founder of OpenAI, predicted that artificial intelligence will become increasingly unpredictable as its reasoning abilities grow. Speaking to thousands of attendees, Sutskever explained that while advancements in AI have relied on scaling data and computing power, this approach is nearing its limits due to finite resources like the internet.
To overcome these challenges, Sutskever suggested that AI could begin generating its own data or evaluating multiple responses to improve accuracy. He envisions a future where superintelligent machines, capable of reasoning like humans, become a reality. However, this reasoning power could lead to unexpected outcomes, as seen with AlphaGo’s famous move in a 2016 board game match or unpredictable strategies from advanced chess algorithms.
Sutskever emphasised that AI’s evolution will make it ‘radically different’ from what we know today, with deeper understanding and potential self-awareness. Yet, he warned that this reasoning could complicate predictability, as AI analyses millions of options to solve complex problems. This shift, he stated, marks the beginning of a new chapter in AI.
OpenAI Chief Financial Officer Sarah Friar sees President-elect Donald Trump as potentially becoming ‘the president of this AI generation,’ arriving at a pivotal moment in the development of artificial general intelligence (AGI). Speaking at the Reuters NEXT conference in New York, Friar highlighted that Trump will be in office as critical infrastructure for AGI, such as autonomous systems, begins to take shape. While acknowledging Elon Musk’s public opposition to OpenAI’s corporate restructuring, Friar expressed confidence that Musk, a close advisor to Trump, would prioritise national interests in his competitive efforts.
Friar also discussed OpenAI’s recent advancements, including the release of its video generation tool, Sora, which has seen overwhelming demand. Account creation has been paused, but she emphasised the company’s careful approach to ensure safety. She predicted significant progress in AI agent products in the coming year, with more autonomous software expected to assist with everyday tasks. Friar further noted the growing collaboration with Microsoft, OpenAI’s largest investor, while also advocating for diversification within the industry.
Despite governance controversies and recent executive departures, Friar reported that OpenAI continues to expand rapidly, with ChatGPT’s weekly active users growing from 200 million to 300 million since August. This surge, she said, is driven by new reasoning models like o1, indicating that the company’s innovation trajectory is accelerating.
Reddit has introduced a new AI-powered feature, Reddit Answers, designed to streamline users’ search for information across the platform. The tool analyses posts and provides summarised responses to user questions, accompanied by links to relevant communities and discussions. Currently, in its testing phase, Reddit Answers is accessible in English to select users in the United States, with plans to expand globally.
The initiative reflects Reddit‘s ambition to rival search engines and AI platforms like OpenAI‘s ChatGPT by leveraging its community-driven content. During the third quarter, Reddit reported a 47% surge in daily active unique visitors, reaching 97.2 million. The platform also saw a 14% increase in its average revenue per user, now at $3.58.
By offering curated responses from its vast user-generated knowledge base, Reddit aims to enhance usability while staying competitive in the evolving AI and search landscape.
A former OpenAI researcher has launched WaveForms AI, a startup focused on creating emotionally engaging voice interactions using AI. Backed by Andreessen Horowitz, the company has raised $40 million and is now valued at $200 million, according to CEO Alexis Conneau.
Conneau, known for his contributions to OpenAI’s GPT-4o voice mode, played a key role in advancing realistic AI conversations. The technology impressed users with its real-time responses and ability to handle interruptions but became embroiled in controversy. OpenAI was accused of copying Scarlett Johansson’s voice from the film Her, which the company denied, stating a different voice actress was used.
WaveForms AI, co-founded by Conneau and Coralie Lemaitre, plans to use its funding to develop advanced audio AI models. These models aim to make voice interactions with AI feel indistinguishable from human conversation, focusing on emotional connections. Conneau highlighted the importance of audio for delivering human-like, empathetic responses in AI systems.
The startup envisions creating consumer products that redefine human-computer interaction. Conneau said the goal is to provide immersive, enjoyable experiences that prioritise the quality of interaction over superintelligence. Further product details remain under wraps.
OpenAI has launched its text-to-video AI model, Sora, to ChatGPT Plus and Pro users, signalling a broader push into multimodal AI technologies. Initially limited to safety testers, Sora is now available as Sora Turbo at no additional cost, allowing users to create videos up to 20 seconds long in various resolutions and aspect ratios.
The move positions OpenAI to compete with similar tools from Meta, Google, and Stability AI. While the model is accessible in most regions, it remains unavailable in EU countries, the UK, and Switzerland due to regulatory considerations. OpenAI plans to introduce tailored pricing options for Sora next year.
The company emphasised safeguards against misuse, such as blocking harmful content like child exploitation and deepfake abuse. It also plans to gradually expand features, including uploads of people, as it enhances protections. Sora marks another step in OpenAI’s efforts to innovate responsibly in the AI space.
OpenAI is exploring the removal of a clause that restricts Microsoft’s access to its most advanced AI technology Artificial General Intelligence (AGI) once it is achieved. AGI, defined as a system that surpasses human capability in economically valuable tasks, has been excluded from Microsoft’s agreements under existing terms. The Financial Times reports that OpenAI aims to unlock further investments by lifting this restriction.
The clause, designed to safeguard AGI from misuse, currently gives OpenAI’s non-profit board control over such breakthroughs. Discussions within the board are ongoing, and no decision has been finalised. If the change proceeds, Microsoft could retain full access to future OpenAI advancements, even post-AGI, aligning with their significant backing of OpenAI.
This potential shift follows OpenAI’s restructuring efforts, including becoming a for-profit benefit corporation. In October, the company closed a $6.6B funding round, valuing it at $157B, as it continues redefining the AI market.
OpenAI is working to integrate AI into e-learning through customisable GPT tools, potentially revolutionising how students interact with academic content. According to Siya Raj Purohit of OpenAI‘s education team, professors are already using AI to create tailored course models, allowing students to engage with focused material. These tools could become staples in education, enabling personalised, lifelong learning.
The initiative complements OpenAI’s broader push into education, marked by the launch of ChatGPT Edu for universities and the hiring of former Coursera executive Leah Belsky. Despite these efforts, challenges remain as many educators express reservations about AI’s role in teaching. Tools like Khanmigo, developed with OpenAI, demonstrate AI’s potential but also reveal its current limitations, including accuracy issues.
With the education AI market expected to reach $88.2 billion, OpenAI is committed to refining its tools and addressing educators’ concerns to drive adoption in this burgeoning sector.
