Microsoft and OpenAI forge alliance, Bing integration powers ChatGPT in battle against Google

Microsoft, as OpenAI’s primary investor and strategic partner, enjoys a significant advantage in the race to integrate artificial intelligence into various software products. OpenAI’s widely popular chatbot has played a pivotal role in Microsoft’s ability to attract customers to its cloud-based service, enabling Azure clients to utilize OpenAI’s offerings. The number of Azure OpenAI customers has surged to 4,500, including prominent companies like Volvo AB, Ikea, Mercedes-Benz Group AG, and Shell Plc, marking a substantial increase from the previous quarter’s 2,500 customers.

Moreover, Microsoft plans to announce the integration of Bing into ChatGPT at a developer conference in Seattle, where the new Bing ChatGPT update will be unveiled. Recently, OpenAI introduced web browsing as an optional feature in the paid Plus tier, with Bing playing a partial role, although the specifics of the arrangement were not initially disclosed.

Under the leadership of CEO Satya Nadella, Microsoft has been strategically realigning its product offerings to center around AI programs known as copilots. These copilots serve as helpful assistants for users across various tasks within Bing, Office, and even in security and finance software, leveraging OpenAI’s advanced GPT-4 technology.With this strategic move, Microsoft aims to enhance its sales, attract a larger share of the cloud-computing market, and intensify its competition against Google in the search domain.

Through its partnership with OpenAI, Microsoft has successfully positioned itself as a front runner in the dynamic landscape of emerging AI tools.

In a bid to promote collaboration and integration, Microsoft is granting external software developers and companies the ability to create programs that seamlessly connect with its OpenAI-powered artificial intelligence software. 

As part of this initiative, Instacart Inc., Redfin Corp., Zillow Group Inc., and Kayak Software Corp. have been announced as partners who will collaborate with Bing’s AI, according to Microsoft. Additionally, Adobe Inc. and Atlassian Corp. will introduce new functionalities for Microsoft’s corporate AI software that can be seamlessly utilized within the Office suite.

OpenAI is enabling external companies to create plugins that integrate with ChatGPT, allowing them to leverage the capabilities of these AI products. Microsoft has also adopted a similar approach, allowing companies and developers to develop plugins that can be used across ChatGPT as well as Microsoft’s own consumer and enterprise AI software. 

As part of this endeavor, approximately 50 software makers, including ServiceNow Inc., are currently working on developing plugins for Microsoft’s corporate AI assistant, known as Microsoft 365 Copilot. This software is undergoing testing with hundreds of customers, and Microsoft aims to have thousands of plugins available for the corporate software upon its release to the wider audience.

During their upcoming announcement on Tuesday, Microsoft will unveil a new copilot feature designed specifically for Windows 11. Initially available as a preview version in June, the Windows Copilot will be conveniently accessible through a button on the taskbar of the computer screen. This copilot will open a side panel, functioning as an assistant to users. 

It will assist them in performing tasks such as text copying and pasting, content rewriting, summarization, and explanations. Similar to the Bing AI chat, Windows users will also have the ability to ask the copilot questions.