Microsoft's GitHub Copilot service suffered huge losses and plans to independently develop AI chips to compete with Nvidia

News on October 10, in the past year, the craze of generative AI has brought huge profits to many companies. One of the biggest beneficiaries has been Nvidia, whose GPUs were used heavily in data centers at companies like Microsoft in 2023, sending the company's profits and stock price soaring.

Microsoft has reportedly struggled to achieve profitability on its artificial intelligence services. The Wall Street Journal pointed out that Microsoft suffered huge losses on its first generative artificial intelligence service GitHub Copilot

GitHub Copilot was first launched in June 2022, allowing developers to let the Copilot AI assistant assist in writing applications and service code. The service currently costs $10 per month (note on this site: currently about 73 yuan), or $100 per year. Certified students and users with mature open source projects can use GitHub Copilot for free.

The Wall Street Journal reports that Microsoft has been losing money on GitHub Copilot since its launch. The report said: "According to a person familiar with the matter, in the first few months of this year, the average user cost Microsoft more than 20 US dollars per month, and some users caused the company losses as high as 80 US dollars per month."

Microsoft plans to launch Microsoft 365 Copilot for enterprise users on November 1. This is an AI service that helps users use Microsoft productivity applications such as Word, PowerPoint, Excel, and Outlook. Each user will pay $30 per month

According to the Wall Street Journal, Microsoft has been looking for more economical ways to run its artificial intelligence services. One possible way is to build its own artificial intelligence graphics processing unit (GPU) instead of buying it from Nvidia. There are recent reports that Microsoft plans to officially announce this artificial intelligence chip at the Ignite conference on November 14th

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