Tech Desk 
Aug 01, 2024
TikTok, a video-sharing platform, has been utilising the artificial intelligence revolutionising the way we interact with the platform. But have you ever thought about what fuels TikTok's AI capabilities? The answer lies in Microsoft's cloud computing services that the video-sharing platform is using to access OpenAI models.
As of March, TikTok was paying Microsoft nearly $20 million a month to access the OpenAI's models, which is nearly a quarter of what its cloud division generated in revenue.
This partnership has been integral to TikTok's AI ambitions, but not without controversy. It was reported last year that ByteDance was using OpenAI's tech to build its own large language model (LLM), violating its terms of service.
Read more: Microsoft urges Congress to regulate AI deepfakes amid growing concern
Microsoft's cloud AI business is well on its way to hitting $1 billion in annual revenue, with TikTok being one of the biggest customers. Those capabilities may prove less necessary if TikTok keeps developing its own LLM.
It has already been investing in its own AI technology that may rival models like OpenAI's in the future. The investment raises questions about the future of Microsoft's cloud AI business and partnership with TikTok.
It has a multibillion-dollar investment deal to be OpenAI's exclusive cloud provider and has spent "several hundreds of millions of dollars" building a supercomputer to power ChatGPT. But the deal with TikTok has increased concerns related to the misuse of OpenAI technology. Upon being reported that ByteDance violated OpenAI's terms, OpenAI suspended ByteDance's account pending investigation into the controversy.
