Ep 812: Fable 5 is (kinda) Back, OpenAI Might Give Gov Equity, Microsoft’s new AI Company and more AI News
episode
Everyday AI Podcast – An AI and ChatGPT Podcast
37 min
2 speakers
3 chapters
transcribed 1 month ago
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This is the Everyday AI Show, the everyday podcast where we simplify AI and bring its power to your fingertips. Listen daily for practical advice to boost your career, business, and everyday life.
This week kind of seemed like upside down week in AI. I mean, let's look at the headlines. Microsoft is starting a new company with billions of dollars and thousands of employees. Anthropic is going to start making drugs. The world's most powerful AI model will no longer be available via subscription in a few days. And maybe even a weirder one, OpenAI is reportedly considering giving up up to 5% in equity to the federal government. yeah let's take some time to sort out this week's ai news and see if we can't enter this week standing right side up let's get into it welcome to everyday ai if you're new here my name is jordan wilson and while we do this every day this is your daily live stream podcast and free daily newsletter helping everyday business leaders like you and me keep up with the ai madness because yeah sometimes it seems like we're flipped upside down i help you every day make sense of it
and help you make smart decisions to grow your company and career so it starts here with the unedited unscripted live stream and podcast but please make sure if you haven't already to subscribe to the podcast on apple podcast or spotify and go to our website at youreverydayai.com sign up for the free daily newsletter we're going to be recapping the highlights from today's show and a whole lot more so let's get into it a ton to cover
What is Microsoft Frontier Company and why is Microsoft investing $2.5B?
So let's start with Microsoft. Yes, Microsoft started a new company as they invested $2.5 billion in a new AI client services company called New Frontier Company. Yeah. So Microsoft Frontier Company, sorry, is the exact name. So Microsoft making a major push to help businesses adopt AI with that $2.5 billion investment in the new group called Microsoft Frontier Company. So Microsoft will also embed 6,000 employees directly with clients to support AI adoption using the model now very commonly known as Forward Deployed Engineering or FTEs. We've seen OpenAI and Anthropic and Google make similar plays, but Microsoft taking it kind of almost a step further with a $2.5 billion commitment of its own and 6,000 employees.
So the new division brings together existing Microsoft engineers, technical consultants, support staff and salespeople with deep industry experience. So the move comes just days after Amazon announced a $1 billion initiative for similar AI support services, highlighting the fierce competition among tech giants to lead in AI business solutions. Yeah, weird. Everyone's becoming a consultant now. So Microsoft's approach aims to help clients navigate tough decisions, such as which AI models to use. Like, do you use OpenAI or Andropix models? Well, Microsoft is a big investor in each. So maybe that's a leg up that the new company, Microsoft Frontier Company, will pitch when they're like, hey, you should hire us to help you use AI versus hiring OpenAI or Andropix deployment companies because we use all of their models.
So the company says its platform supports more AI models and integrations than competitors like Palantir, which popularized the forward deploy engineering role in the tech world before all the AI or the large language model companies, I guess, got into the race. Microsoft has invested tens of billions of dollars in data centers for generative AI and offers, obviously, many AI-powered tools and solutions from the dozens of co-pilot offerings across their tech stack. But Microsoft, so far, their stock is down a bit this year. They're actually down about 20% year to date, the biggest drop among the major tech companies, partly due to concerns that AI could disrupt established software markets. So the company did, though, generate about $2 billion in revenue from enterprise and partner services last quarter, up 2.5% from a year earlier.
so yeah this one not necessarily surprising that microsoft is starting its own deployment company but maybe surprising that they committed 2.5 billion dollars and 6 000 employees especially since microsoft is in the middle of a lot of cuts right they've cut thousands of employees uh and kind of pushing the early retirement uh portion as well so
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Chapters
3 chaptersSpeakers
2 identifiedMore from Everyday AI Podcast – An AI and ChatGPT Podcast
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