Some Microsoft insiders are concerned that the company's AI strategy is overly focused on its partnership with AI company OpenAI, leading some to believe that Microsoft has become an "honorary IT department" for OpenAI. This has also led to the departure of some executives involved in Microsoft's own AI programs.
Microsoft's Azure AI organization will now prioritize Azure OpenAI services, resulting in cuts to Microsoft's on-premises services such as Azure Cognitive Search, Azure AI Robotics Services, and Kinect DK, or the need to bundle them with other products.
One insider said that such an approach, while not innovative enough, is a good business strategy.
Microsoft is optimistic about its AI tools, which it is bringing to market in a meaningful way, said Microsoft spokesman Frank Shaw.