TikTok is one of Microsoft’s biggest AI cloud computing customers

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A source told The Information that TikTok was paying Microsoft astir $20 cardinal per period to entree OpenAI’s models arsenic of March, making up astir a 4th of the gross generated by its increasingly lucrative unreality division.

Microsoft’s unreality AI concern was connected way to gain $1 cardinal successful yearly revenue, according to The Information, but the study notes that TikTok may not request these capabilities this heavy if it develops its ain ample connection exemplary (LLM).

Last year, my workfellow Alex Heath reported that TikTok’s genitor institution ByteDance was “secretly using” OpenAI’s exertion to make an LLM of its own:

This signifier is mostly considered a faux pas successful the AI world. It’s besides successful nonstop usurpation of OpenAI’s terms of service, which authorities that its exemplary output can’t beryllium utilized “to make immoderate artificial quality models that vie with our products and services.” Microsoft, which ByteDance is buying its OpenAI entree through, has the aforesaid policy.

Following that report, OpenAI suspended ByteDance’s account to analyse a imaginable usurpation of its developer license. At the time, ByteDance told CNN it was utilizing the exertion “to a precise constricted extent” to assistance make its ain models.

Microsoft besides has a multibillion-dollar concern woody making it OpenAI’s exclusive unreality provider, and has spent “several hundreds of millions of dollars” gathering a supercomputer to powerfulness ChatGPT. In its Q4 2024 net study released Tuesday, Microsoft revealed Azure gross maturation of 29 percent, conscionable missing the 30 to 31 percent its past net merchandise projected. CFO Amy Hood said that successful Q1 2025, Microsoft anticipates astir 28–29 percent of Azure gross growth.

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