Microsoft Is Building GPT-5

PLUS: Copilot+ PCs That Watch Your Screen

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Hello readers,

Welcome to another edition of This Week in the Future! Microsoft held their annual Build event for developers and announced, you guessed it, AI stuff. Plus, new Copilot+ PCs that seriously compete with MacBooks and always watch your screen.

Let’s get into it!

Microsoft Build 2024

Microsoft held their annual Build event for developers and unveiled what they believe to be breakthroughs in AI development and hardware. We’ve got new developer tools, frontier models, partnerships, and hints at GPT-5. Here’s everything announced:

Real-Time Intelligence in Microsoft Fabric provides a SaaS solution for acting on high-volume, time-sensitive granular data to make faster and better business decisions.

GitHub Copilot extensions will allow developers to customize their Copilot experience. With the Azure extension, developers can manage Azure resources, troubleshoot issues, and locate logs and code — all in natural language using Copilot Chat.

Phi-3-vision is a new multimodal small language model now available on Azure. OpenAI’s GPT-4o is also available in Azure AI Studio and as an API.

Team Copilot is an expansion of Copilot for Microsoft 365 intended to make Copilot a more active participant in team workflows. Microsoft Copilot Studio is also adding agent capabilities for making more active and integrated custom Copilots.

New virtual machines available to cloud customers built on AMD’s MI300X AI chip and Microsoft’s own Azure Cobalt 100 processor optimized for AI workloads.

Microsoft announced new partnerships:

  • Khan Academy will use Phi-3 (trained on textbook-quality data) to improve math tutoring. Microsoft is donating AI-optimized Azure infrastructure to make Khanmigo for Teachers freely available.

  • Cognition’s autonomous software agent Devin (which we covered here) will be brought to customers and be powered by Azure under the partnership.

  • Hugging Face expanded its cloud collaboration and added new open source models with direct, 1-click deployment from Azure AI Studio.

Copilot+ PCs

AI has emboldened Microsoft to seriously compete with the MacBook Pro with the introduction of Copilot+ PCs. These AI-first devices utilize a dedicated Neural Processing Unit (NPU) and Qualcomm’s Snapdragon chip (which now has a dev kit) for fast, on-device AI. One notable feature is Recall, where Copilot is constantly taking snapshots of your screen, so that you can ask it where something was on your PC. Microsoft says the screenshots never leave your device.

Our Take

While Microsoft ingratiating itself with developers and constantly innovating is great and all, the real announcement was only hinted at — Microsoft is building GPT-5. Microsoft placed emphasis on scaling laws, alluding to the scaling hypothesis (more data and compute = AGI). Sam Altman even made an appearance to reaffirm that GPT-5 will be much smarter. Whether the scaling hypothesis holds indefinitely remains to be seen.

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