Key insights
- Microsoft is investing heavily in developing its own frontier AI models by 2027, aiming to compete with OpenAI and Anthropic. This involves building significant computing infrastructure, including Nvidia GB200 chips. This signals continued investment and competition in the AI space, which could positively influence market sentiment towards tech stocks, particularly MSFT and NVDA.
Investing.com -- Microsoft Corp. (NASDAQ:MSFT) is working to develop large-scale artificial intelligence models by next year as part of efforts to create in-house alternatives to advanced AI tools from OpenAI and Anthropic.
Mustafa Suleyman, chief executive officer of Microsoft AI, said in an interview with Bloomberg News the company aims to achieve state-of-the-art capabilities by 2027 across models that can respond to or generate text, images and audio.
On Thursday, Suleyman’s unit released a speech transcription model that Microsoft says outperforms competing products in benchmark testing on 11 of the 25 most widely spoken languages. The model is a specialized tool designed for efficiency and trained on fewer data points than general-purpose models like Claude 3 Opus or OpenAI’s GPT-4.
Microsoft is building the computing infrastructure needed to develop more broadly capable models, Suleyman said. In October, the company began using a cluster of Nvidia (NASDAQ:NVDA) GB200 chips to expand its computing resources. The company plans to scale up to frontier-level computing capacity over the next 12 to 18 months, he said.
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