The actual service you are connecting to (example: website, game server etc.) most likely uses a IP-based detection service such as https://focsec.com/ or similar. In such cases, the protocol will not make a difference.
Vendor assessment, legal concerns, data privacy concerns, talks about SLA guarantees, talks about 24/7 support plans and much more. There will likely be several departments involved. Technical folks, legal people, data privacy experts etc.
That new deal could pass easily thru 50 peoples desk before getting signed eventually. For what? A 15% saving that could be wiped out with the next round of price adjustments from the new vendor? Simply not worth it. That is why SaaS revenue tends to be so sticky.
This is what shouldn't add up: Microsoft is literally adding GPT-4, for free, to the Windows 11 taskbar. Can you imagine how much that costs when you look at the GPT-4 API, or ChatGPT's subscription price? Either Microsoft is burning money, or OpenAI agreed to burn money with them. But why would they do that, when that would compromise $20/mo. subscription sales?
Something doesn't financially add up there.
My first comment wasn't really about them not being profitable, it was more of a question about how close to bankruptcy they are. Again though, you're right that MSFT probably did their DD, so that's unlikely
Imagine if you were the CTO of a company, massively underestimated your AWS bill, and presented your board with something enormous. Maybe something like that happened?
Or, if I wanted to speculate to the extremely negative; what if the training and operating costs ballooned to such a degree, that the deal with Microsoft was an attempt to plug the cash hole without having to go to the board requesting an enormous loan? Because the fact that Copilot (edit: previously known as Bing Chat and Bing Image Creator) is free and ChatGPT (edit: and DALL-E 3) are not should be a red flag...
I'd assume that running a model that only needs to deal with a single programming language (the Copilot plugin knows what kind of code base it is working on) is _a lot_ cheaper than running the "full" ChatGPT 4.
Joking aside, this feels massive. Both that it happened so suddenly and that the announcement doesn't mince words. The fact that the CTO is now CEO makes me think it's probably not a lie about their tech. It wouldn't make sense to say "we've been lying about our capabilities" and then appoint the current CTO as CEO.
This makes me think it's either financial or a scandal around Sam himself.
I can't wait to hear more
Agreed
> This makes me think it's either financial or a scandal around Sam himself.
I can't imagine it being about fake financials. This isn't Microsoft's first time doing due diligence on a acquisition. That is both technical and financial due diligence.
And clearly they didn't buy the company because it was super profitable, but for the tech.