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Microsoft has developed an AI model that can compete with OpenAI.

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Microsoft is reportedly developing its own large language model (LLM) for artificial intelligence (AI), competing with products from OpenAI, Google, or Meta. The latest LLM by Microsoft is called MAI-1, which contains 500 billion parameters, making it the largest LLM the company has ever developed. However, it is smaller than OpenAI GPT-4's one trillion parameters.

Previously, Microsoft had been using products from OpenAI, which the company has invested over 10 billion USD in for many years. MAI-1 is the first LLM developed by Microsoft, following the announcement of the small-scale model Phi-3 mini with 3.8 billion parameters, serving a number of services such as Azure, Hugging Face, and Ollama.

MAI-1 requires a lot of computing power and training data. Microsoft has reportedly reserved a large number of servers equipped with Nvidia chips to serve this project. The project is overseen by Mustafa Suleyman, co-founder of Google DeepMind and former CEO of AI startup Inflection. In March, Microsoft spent $650 million to attract most of the personnel and models developed by AI Inflection. However, sources say that MAI-1 is an independent product of Microsoft, not transferred from Suleyman's old company. The company has not yet commented. 

Microsoft is a leader in AI among BigTech companies, and while it does not own a famous LLM, it has contributed greatly to promoting ChatGPT and OpenAI through investment deals and its relationship with CEO Sam Altman. Microsoft's Copilot chatbot running on GPT-4 Turbo is also considered one of the best chatbots today. The company may introduce MAI-1 to developers at the Build event, scheduled to be held at the end of May.
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