Microsoft will make the case that those customers should onboard to Microsoft offerings when at parity due to the unreliability of OpenAIs governance. And they won’t be wrong. Enterprise customers don’t want to hear about a critical vendor staging a board coup on Bloomberg, with a bunch of key employees quitting in solidarity, and then reading only a day or two later “on second thought, we were wrong, CEO is coming back.” This will make your vendor/third party risk team very twitchy. This will make executive leadership give the command down the chain to constantly explore alternatives.
OpenAI’s actions do not give people who approve tens or hundreds of millions of dollars in spend the warm fuzzy feeling. Microsoft knows exactly the consistency and stability these customers desire. They are the conduit by which value flows from OpenAI to Microsoft customers until Microsoft can deliver the value themselves.
(also why people get fed Teams vs Slack; because of who is making the purchasing decision, and why it’s being made)
> At the same time, companies that depend on OpenAI’s software were hastily looking at competing technologies, such as Meta Plaforms Inc.’s large language model, known as Llama. “As a startup, we are worried now. Do we continue with them or not?” said Amr Awadallah, the CEO of Vectara, which creates chatbots for corporate data.
> He said that the choice to continue with OpenAI or seek out a competitor would depend on reassurances from the company and Microsoft. “We need Microsoft to speak up and say everything is stable, we’ll continue to focus on our customers and partners,” Awadallah said. “We need to hear something like that to restore our confidence.”
OpenAI’s actions do not give people who approve tens or hundreds of millions of dollars in spend the warm fuzzy feeling. Microsoft knows exactly the consistency and stability these customers desire. They are the conduit by which value flows from OpenAI to Microsoft customers until Microsoft can deliver the value themselves.
(also why people get fed Teams vs Slack; because of who is making the purchasing decision, and why it’s being made)
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