Business News Report
October 25, 2023

Microsoft Project Airsim Concludes as Focus Shifts to OpenAI Collaboration

In Brief

Microsoft Ends Project Airsim and Redirects its AI Strategy Towards OpenAI Collaboration.

Microsoft Project Airsim Concludes as Focus Shifts to OpenAI Collaboration

Microsoft is discontinuing its industrial metaverse endeavor, Project Airsim, and shifting its artificial intelligence strategy towards a partnership with OpenAI. This decision comes in line with recent changes in the tech giant’s approach to AI and its collaborative projects.

Sources have confirmed that the developers behind Project Airsim, a prominent Microsoft Industrial Metaverse initiative, received notifications about the project’s termination. Microsoft plans to fully dissolve the project by December 15th of this year.

From Bonsai to Microsoft Airsim

Microsoft’s decision to shut down Airsim follows closely on the heels of them ceasing support for Project Bonsai on October 19th. Bonsai, an AI platform envisioned for curating automated systems in industrial spheres, marked another component of Microsoft’s ‘Industrial Metaverse’.

Bonsai’s journey with Microsoft began in 2018, following the company’s acquisition of the AI startup as a strategic countermove to Google’s Deepmind purchase. Conversely, the Airsim initiative commenced in 2017 as an open-source project but gradually pivoted to cater to industrial clienteles.

While we take pride in the strides made by this incubation program and its impact on our clientele, our commitment remains unwavering to Azure, fostering a conducive platform for industrial virtual worlds and other in-house AI ventures.

Microsoft stated

Microsoft CTO, Kevin Scott, who once championed both Project Bonsai and Airsim, played a pivotal role in fostering a collaboration between Microsoft and OpenAI. Under his guidance, both projects aimed to bolster Microsoft’s cloud product offerings for their industrial partners. Interestingly, insiders point to Microsoft CEO Satya Nadella’s endorsement of Project Bonsai in numerous discussions, equating its significance to that of OpenAI.

Azure, OpenAI, and the Changing Landscape

Initially, Microsoft viewed these projects as tools to entice industrial software developers, thereby fortifying Azure cloud’s standing against rivals like Amazon Web Services. Yet, as the alliance with OpenAI intensified, Scott’s attention towards these in-house projects seemed to wane.

A testament to the transient nature of tech projects, Microsoft’s enthusiastic promotion of its industrial metaverse vision in early 2023 was quickly overshadowed. By spring, Project Bonsai was already in the rearview, with its entire team disbanded just a few months post its formation.

Insiders believe that Project Airsim managed to stay afloat due to its perceived potential clientele. However, Gurdeep Paull, the key figure overseeing both these projects, left Microsoft recently after a commendable three-decade tenure.

The curtain falling on Project Airsim indicates a broader strategic shift. Microsoft seems to be realigning its resources and focus more towards OpenAI. This move further underscores their belief in prioritizing artificial intelligence, even at the expense of experimental ventures like Surface Headphones.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

More articles
Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Hot Stories
Join Our Newsletter.
Latest News

Is Europe’s Banking System Ready For Stablecoins? I Went To Barcelona To Find Out

At EBC Barcelona, banks said euro stablecoins await custody and capital rules — while payment firms and ...

Know More

Shufti, Jumio, Sumsub, And Beyond: Top 6 Identity Verification And Compliance Platforms To Know In 2026

Shufti, Sumsub, Incode, Veriff, Persona and Jumio compared on compliance lifecycle coverage, pricing transparency and fraud detection ...

Know More
Read More
Read more
Gate Update: Bridging Crypto, TradFi & Sports — New Products, Compliance Wins & Big Rewards
News Report
Gate Update: Bridging Crypto, TradFi & Sports — New Products, Compliance Wins & Big Rewards
October 30, 2026
Ambire Unveils Ice: An Open-Source Hardware Wallet Designed for Safe Smart Accounts
News Report
Ambire Unveils Ice: An Open-Source Hardware Wallet Designed for Safe Smart Accounts
October 30, 2026
Bitget Expands Creator Earning Opportunities With New Multi-Asset #NoCap Affiliate Program
News Report
Bitget Expands Creator Earning Opportunities With New Multi-Asset #NoCap Affiliate Program
October 30, 2026
Top 10 AI-Powered Business Intelligence Platforms in 2026
Top Lists News Report
Top 10 AI-Powered Business Intelligence Platforms in 2026
October 29, 2026