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


TikTok is apparently spending a lot on AI.

A source told The Information that TikTok was paying Microsoft almost $20 million per month to access OpenAI’s models as of March, making up nearly a quarter of the revenue generated by its increasingly lucrative cloud division. Microsoft’s cloud AI business was on track to earn $1 billion in annual revenue, according to The Information, but the report notes that TikTokmay not need these capabilities this heavily if it develops its own large language model (LLM). Microsoft also has a multibillion-dollar investment deal making it OpenAI’s exclusive cloud provider, and has spent “several hundreds of millions of dollars” building a supercomputer to power ChatGPT.

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