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Chronicles

The story behind the story

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Microsoft makes its Azure OpenAI Service, announced in 2021, broadly available, giving users access to the GPT-3.5 language model, DALL-E 2, and ChatGPT “soon”

Microsoft Corp. said it will add OpenAI's viral artificial intelligence bot ChatGPT to its cloud-based Azure service …

Bloomberg Dina Bass

Context & Ripple Effects

Microsoft’s Azure route to OpenAI models began with an exclusive GPT-3 licensing arrangement and then a select-business preview in which OpenAI continued to sell its own API with newer upgrades. Broad availability turns that limited Azure offering into a standard cloud-service channel for GPT-3.5 and DALL-E 2.

The promised ChatGPT addition was subsequently realized through ChatGPT access for Azure developers, underscoring that Azure OpenAI Service was becoming Microsoft’s distribution layer for successive OpenAI models.

First-order effects

  • Azure customers can now obtain GPT-3.5 and DALL-E 2 through Microsoft’s broadly available service rather than needing to be among the earlier invited businesses.
  • Microsoft gains a wider cloud-sales path for OpenAI models, while OpenAI’s separately sold API remains a parallel route for customers seeking its latest upgrades.

Second-order effects

  • Developers and businesses evaluating OpenAI models gain a choice between Azure’s hosted channel and OpenAI’s direct API, putting model availability and upgrade timing at the center of platform selection.
  • The later ChatGPT launch on Azure extends the service from text generation and image generation toward conversational features that customers can embed in their own applications.

Third-order effects

  • If Microsoft continues to move new OpenAI models from restricted access to broad Azure availability, model access becomes a differentiated cloud-platform capability rather than a standalone API purchase.
  • The pattern points to AI infrastructure platformization: cloud providers increasingly package foundation-model access as part of the developer environment where applications are built and operated.

The trend: Foundation models are moving from limited previews and direct APIs into broadly available cloud platforms that control enterprise distribution.

Discussion

  • @openai @openai on x
    We've learned a lot from the ChatGPT research preview and have been making important updates based on user feedback. ChatGPT will be coming to our API and Microsoft's Azure OpenAI Service soon. Sign up for updates here: https://share.hsforms.com/...
  • @satyanadella Satya Nadella on x
    ChatGPT is coming soon to the Azure OpenAI Service, which is now generally available, as we help customers apply the world's most advanced AI models to their own business imperatives. https://azure.microsoft.com/ ...
  • @azure @azure on x
    Just in—new AI models on Azure OpenAI Service empower your business to deliver results at scale. Explore the possibilities → https://azure.microsoft.com/ ... #AzureOpenAI https://twitter.com/...
  • @techwontsaveus @techwontsaveus on x
    “Analysts at Morgan Stanley estimate that the higher cost of natural language processing means that answering a query using ChatGPT costs around seven times as much as a typical internet search.” https://www.ft.com/...
  • @suhail @suhail on x
    Microsoft is moving *fast*. Incredible to watch. https://twitter.com/...
  • @levie Aaron Levie on x
    The GPUs have arrived! https://twitter.com/...
  • @deliprao Delip Rao on x
    At this point, it's almost silly if Google Cloud does not offer PaLM or one of the many many models they have working internally. https://twitter.com/...
  • @caro_milanesi Carolina Milanesi on x
    Glad to see this called out “As part of our Limited Access Framework, developers are required to apply for access, describing their intended use case or application before they are given access to the service” #responsibleAI is gonna be even more key with generative models https:…
  • @rstephens Robert Stephens on x
    This is going to make Google go apeshit. We all win. https://twitter.com/...
  • @patrickmoorhead Patrick Moorhead on x
    Interesting. I don't see yet a long-term differentiated advantage, but hope to find out. https://twitter.com/...
  • @gdb Greg Brockman on x
    Azure OpenAI Service is now generally available. Very nice milestone in making these models widely accessible: https://twitter.com/...
  • @copyconstruct Cindy Sridharan on x
    I've said this before, I'll say it again: Satya's early investment in OpenAI is sheer Hall of Fame stuff. He now has the first mover advantage in an entire new market and has positioned Microsoft as the de-facto leader of the most pre-eminent emerging technology. 🙇‍♀️ https://twi…
  • @emostaque Emad on x
    And thus Google becomes free to offer LaMDA, flan-PaLM and more through GCP on its TPUs. Going to be a hard road for LLM companies to convince investors they can compete against Google and Microsoft when both are focusing here. Unless... https://twitter.com/...
  • @levie Aaron Levie on x
    This is a very big deal https://twitter.com/...
  • @techau @techau on x
    Massive ChatGPT announcement !! https://twitter.com/...
  • @financialtimes @financialtimes on x
    This could be the defining deal for a new era of artificial intelligence https://www.ft.com/...
  • @jimpethokoukis James Pethokoukis on x
    “The potential upheaval this could cause in the software world has not been lost on Microsoft's rivals, who see the technology as a rare opportunity to break into markets dominated by Big Tech.” https://www.ft.com/...
  • @tunguz Bojan Tunguz on x
    Perhaps the only semi-surprising thing about this announcement is the speed with which these amazing AI systems are moving into general availability. 3/9
  • @tunguz Bojan Tunguz on x
    As one of the most unsurprising moves in tech, @Microsoft has announced that they will incorporate all of @OpenAI tools into their products. In particular, this means a wide availability of ChatGPT in various Office products. 1/9
  • @imitwe Stockman on x
    IBM dream... Those IBM salesmen promising us utopia for years https://twitter.com/... https://twitter.com/...
  • @tomwarren Tom Warren on x
    Microsoft CEO Satya Nadella discussed the Activision deal briefly today. “If you believe in competition, you should believe in this deal. I hope the competition authorities get focused more on competition and that would be a good day.” https://www.wsj.com/... https://twitter.com/…