TikTok's $20 Million Monthly Investment in OpenAI Models Drives Microsoft's AI Revenue: The Information

Jul 31, 2024, 01:08 PM

TikTok has been paying nearly $20 million per month to Microsoft for access to OpenAI's artificial intelligence models as of March, according to internal documents from The Information. This expenditure accounts for approximately 25% of the total revenue Microsoft generates from reselling OpenAI's AI models. TikTok, owned by ByteDance, is the largest buyer of OpenAI's models through Microsoft's cloud services. This significant investment is part of Microsoft's broader strategy to create a multibillion-dollar AI profit machine, driven by key clients like TikTok.