We've reported in the past how the generative AI boom over the past year has resulted in huge profits for many companies. One of the biggest companies to profit from the artificial intelligence boom is NVIDIA, with demand for its GPUs set to increase significantly in 2023 from Microsoft and other data center companies. This resulted in huge profits for NVIDIA and a huge increase in its stock price.
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However, Microsoft has reportedly struggled to make money from its AI services. A new report from The Wall Street Journal claims to have information on how Microsoft lost a lot of money on GitHubCopilot, one of its first generative artificial intelligence services.
First launched in June 2022, GitHub Copilot allows developers to let the Copilot AI assistant help write the code for applications and services. The service is available now, with a subscription fee of $10 per month or $100 per year. GitHubCopilot is free for verified students and owners of established open source projects.
According to the Wall Street Journal, Microsoft has lost a lot of money since the launch of GitHubCopilot. It states:
In the first few months of this year, the company lost an average of more than $20 per user per month, with some users costing the company as much as $80 a month, according to a person familiar with the matter.
Microsoft plans to launch Microsoft 365 Copilot for enterprise users on November 1. The artificial intelligence service will facilitate use of the company's productivity applications such as Word, PowerPoint, Excel, Outlook, etc. for $30 per user per month.
Today's article claims that Microsoft has been looking for cheaper ways to run its artificial intelligence services. One of them might be to make your own AIGPU instead of buying it from NVIDIA. A recent report claimed that Microsoft will officially announce the AI chip at the Ignite conference on November 14.