

Microsoft's $1 billion investment in OpenAI in 2019 was driven by fears that Google was far ahead in AI development, as revealed in internal emails involving Microsoft CTO Kevin Scott, CEO Satya Nadella, and co-founder Bill Gates. The emails, disclosed during the US Justice Department's antitrust case against Google, highlighted concerns about Microsoft lagging behind in machine learning and infrastructure capabilities compared to Google.
The partnership with OpenAI, which has grown to a $13 billion investment, was aimed at boosting Microsoft's AI capabilities, integrating OpenAI's models into Microsoft products like Office, Bing, and Windows. This strategic move has positioned Microsoft as a leader in AI, addressing earlier concerns of falling behind competitors, and continues to be a key focus for the company into 2024 and beyond.