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

Microsoft’s cloud AI business is expected to generate $1 billion in annual revenue information, But the report also said that TikTok If you are developing your own large language models (LLMs), these features may not be as necessary.

Last year, my colleague Alex Heath reported that TikTok’s parent company, ByteDance, was “secretly using” OpenAI’s technology to create its own LLM.

This behavior is generally considered rude in the AI ​​world. terms of serviceThe company said the model output “may not be used to develop artificial intelligence models that compete with our products or services.” Microsoft, through which ByteDance is buying access to OpenAI, Have the same policy.

Microsoft also has a multibillion-dollar investment deal to be OpenAI’s exclusive cloud provider and is spending “hundreds of millions of dollars” to build a supercomputer to run ChatGPT. In its fourth-quarter 2024 earnings report released Tuesday, Microsoft announced that Azure revenue would grow 29 percent, slightly below the 30-31 percent forecast in its last earnings report. CFO Amy Hood said that for the first quarter of 2025, Microsoft expects Azure revenue to grow about 28-29 percent.