According to a report from The Information, insiders at Microsoft revealed that TikTok pays Microsoft’s Azure OpenAI Service a hefty sum of $20 million per month. This amount nearly equals 25% of Microsoft’s projected annual revenue from AI services on Azure, which is estimated at $1 billion per year ($83 million per month). It is important to note that this information is based on data from March and current figures may vary.
Previously, there were reports indicating that TikTok had plans to develop its own AI models, with one strategy involving leveraging technology from OpenAI for further advancement. If successful, this could potentially eliminate the need for TikTok to pay for Azure OpenAI Service, impacting Microsoft’s revenue stream in this area.
The report also highlights key customers who utilize Microsoft’s Azure OpenAI Service, such as AT&T, Coca-Cola, Fidelity, Volvo, and Walmart, while Zoom, Klarna, and Salesforce have opted to directly pay for OpenAI services.
Source: Quartz
TLDR: TikTok pays Microsoft’s Azure OpenAI Service $20 million monthly, comprising a significant portion of Microsoft’s AI service revenue. Potential plans by TikTok to develop its own AI models may impact Microsoft’s earnings in this sector. Key customers utilizing Microsoft’s Azure OpenAI Service include AT&T, Coca-Cola, Fidelity, Volvo, and Walmart.
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