Ask HN: Will Microsoft benefit from all the awesome stuff OpenAI is building?

6 points·MrThoughtful··6 comments

As far as I understand the MS/OpenAI deal, MS will get back a multiple of their investment and that's it.

Isn't MS afraid, that OpenAI will build a ton of useful stuff Microsoft depends on and then MS is at their mercy?

I think this analysis of the "new Microsoft" strategy is pretty compelling:

> Instead of trying to be the main player in every single sector, Microsoft has switched their focus to simply helping the winner in each sector. With servers, they embraced Linux, with browsers, they embraced Google, and now with search engines, they’re embracing ChatGPT.

> While this background role isn’t nearly as lucrative as controlling the whole space itself, this strategy is likely way more sustainable. Not to mention, this approach is already reflecting in their market cap. In late 2021, Microsoft briefly overtook Apple to become the world’s largest company. Looking forward, Microsoft may end up holding this position for a much longer period of time.

https://youtu.be/9DrGcz0oKdo

It's worked well for them in the past.

Office on Mac. Boom, they can make plenty of money from a 'competitor'.

I think MS could have made a mistake by rushing in to this new shiny tech and it will bite them. Just seemed like a desperate move aquiring OpenAI. Now they are stuck with controlling this beast while Google lean back and learn from their mistakes.

MS owns OpenAI? I thought it was partnership?

Strictly speaking it is a partnership, but given the extremely high investment earlier this year [1], one could almost consider that ownership.

[1] https://openai.com/blog/openai-and-microsoft-extend-partners...

Currently, MS is winning the game, but with logarithmic growth. Google knows everything, it is just cleaning the track. Google will grow exponentially.

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