Microsoft might dump OpenAI

Welcome back to another Daily Update — We have big news today as Microsoft may be looking to move on from OpenAI. Here’s the full menu:

🗞️ The Latest in AI: Microsoft plans AI service with Databricks that could hurt long-term partner OpenAI

🤖 AI Tool of the Day: Rytr — High-quality content in just a few seconds

📸 Business Spotlight: Snapchat is expanding generative AI features with ‘Dreams’

🚨 AI Roundup: Four quick hits

Read time: 2 minutes

🗞️ The Latest in AI: Microsoft plans AI service with Databricks that could hurt long-term partner OpenAI

Working with limited information here because the original report is behind a huge paywall, but I’ve verified some key points.

Microsoft plans to start selling a new version of Databricks’ software that helps customers build AI apps for their businesses. Databricks is an alternative to licensing OpenAI’s proprietary AI models.

What you need to know:

• Databricks is a data analytics platform that helps companies make AI models from scratch or repurpose open-source models.

• Microsoft will sell the advanced software through its Azure cloud-server unit.

• Last month Microsoft laid out an aggressive spending plan to meet demands for its AI services.

• Microsoft has invested billions of dollars in OpenAI since the two companies partnered up in 2016.

• Despite ChatGPT’s global fame, OpenAI has struggled to gain the trust of enterprises. Large companies including Apple, Spotify, Wells Fargo, Samsung, JP Morgan and Verizon have opted out of using ChatGPT.

• AT&T, Walgreens, TD Bank, Toyota and Adobe already use Databricks’ Lakehouse Platform.

The bottom line: This is unfortunate news for OpenAI as it faces the possibility of bankruptcy by the end of 2024. It seems like Microsoft’s primary focus has shifted towards its Azure services.

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📸 Business Spotlight: Snapchat is expanding generative AI features with ‘Dreams’

Just a week after Snapchat’s “My AI” chatbot disturbed users with a glitch, the platform is preparing to further expand its generative AI offerings with a new feature called “Dreams.”

Key points:

• The company has been developing features that allow users to take or upload selfies to generate new pictures in scenarios imagined by users.

• Snapchat imagines Dreams as a way to place pictures of users in “fantastical places and scenarios.”

• The company is also developing Dreams with Friends, a feature where users give their friends permission to generate AI “dream” images with the two of them included.

• This feature is similar to an app called Remini that went viral last month.

The bottom line: Snapchat doesn’t have a great track record with AI, but we’re beginning to see the widespread integration of AI into social media.

🚨 AI Roundup: Four quick hits

• Fair share: YouTube is working on a plan to compensate artists and rights holders for AI music.

• More music: Developers are using AI for text-to-music apps.

• Ongoing war: The New York Times blocks OpenAI’s web crawler as the news organization considers suing the company.

• Foreign affairs: U.S. and China test intelligent-drone swarms in military AI arms race.

Have questions or thoughts on today’s newsletter? Reply to this email and I’ll get back to you as soon as I can. Thanks for reading The Daily Update!

Jack

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