Microsoft temporarily blocked staff from using ChatGPT over security concerns, report says

• Microsoft temporarily blocked employees from using ChatGPT on Thursday, CNBC reported.
• Staff were warned OpenAI's chatbot is an "external service" that posed privacy and security risks.

Microsoft temporarily blocked its employees from using ChatGPT, according to CNBC reported.

The tech giant banned access to OpenAI's chatbot, in which it's invested billions of dollars and incorporated into some products, for a brief period Thursday after warning employees that it posed privacy and security concerns. The company later reversed the move.

"Due to security and data concerns a number of AI tools are no longer available for employees to use," Microsoft said in an internal update seen by CNBC.

"While it is true that Microsoft has invested in OpenAI, and that ChatGPT has built-in safeguards to prevent improper use, the website is nevertheless a third-party external service. That means you must exercise caution using it due to risks of privacy and security. "

The block proved temporary, with Microsoft reinstating access to ChatGPT shortly after it became public knowledge. The company told CNBC the move was accidental, and that access to ChatGPT was inadvertently turned off during testing of its AI control systems.

Sam Altman reacted by joking on X about OpenAI blocking Microsoft's 365 software in response.

"The rumors that we are blocking Microsoft 365 in retaliation are completely unfounded," the OpenAI CEO posted.

Several big tech companies, including Amazon and Apple, have issued bans on using ChatGPT internally over fears that using it could lead to leaks of confidential data.

Microsoft and OpenAI have a close partnership, with the tech giant investing $10 billion in the ChatGPT creator at the start of 2023.

The alliance has proved mutually beneficial. OpenAI has been able to leverage Microsoft's computing power and GPUs to train its AI models, while Microsoft has incorporated the GPT-4 AI into its Bing search engine.

However, there are signs of a rift emerging. The Information reported that Microsoft is building its own cheaper in-house AI models to reduce its reliance on OpenAI.

OpenAI, meanwhile, is reportedly exploring plans to build its own AI chips as it seeks to bring down the huge cost of training models like ChatGPT.

Speaking at The Wall Street Journal's Tech Live event, Altman said that while OpenAI is not developing its own chips, the global shortage of vital processors meant he would "never rule out" doing so.

Microsoft and OpenAI did not immediately respond to requests for comment from Insider, made outside normal working hours.