According to a report from The Information, TikTok has been paying Microsoft nearly $20 million monthly for access to OpenAI’s solutions, which accounted for approximately 25% of the revenue generated by Microsoft’s rapidly expanding cloud sector as of March.
The AI cloud business division at Microsoft was projected to hit around $1 billion in annual earnings, as noted by The Information. However, it appears that TikTok might lessen its reliance on these services if the platform successfully develops its own large language model (LLM).
In an article last year, my colleague Alex Heath indicated that ByteDance, the parent company of TikTok, was discreetly leveraging OpenAI’s innovative technology in an effort to design its own LLM:
This approach is generally perceived as questionable within the AI community. Furthermore, it constitutes a breach of OpenAI’s usage policies…
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