Technology

ChatGPT creator OpenAI casts spell on Microsoft

OpenAI, the developer of ChatGPT and a Microsoft-backed firm, is currently the most exciting new company in Silicon Valley. ChatGPT is a much-hyped chatbot that can create a poem, a college essay, or even a line of software code.

OpenAI, the developer of ChatGPT and a Microsoft-backed firm, is currently the most exciting new company in Silicon Valley. ChatGPT is a much-hyped chatbot that can create a poem, a college essay, or even a line of software code.

Elon Musk, founder and CEO of Tesla, was an early investor in OpenAI. Microsoft is reportedly in talks to increase an initial investment of $1 billion to $10 billion to rival Google’s preeminent search engine.

Suppose the deal with the Windows maker goes through. In that case, OpenAI will be worth $29 billion, making it a remarkable triumph in the IT industry at a time when other companies like Amazon, Meta, and Twitter are slashing costs and laying off employees.

According to Wedbush Securities analyst Dan Ives, “Microsoft is clearly being aggressive on this front and not going to be left behind on what could be a potential game-changing AI investment.”

OpenAI’s Dall-E 2, which can generate digital graphics in response to a single instruction, impressed the tech community long before the debut of ChatGPT.

Microsoft has already used Dall-E 2 in a number of its products, and now, according to a report from Bloomberg, the tech giant plans to graft ChatGPT onto its Bing search engine to compete with Google.

Since its debut in November, consumers have been captivated by ChatGPT, a chatbot that has impressed many with its capabilities.

Concerns have been raised that it could be exploited by dishonest students or for disinformation because it can generate human-sounding responses to complex questions in seconds.

OpenAI’s brilliant marketing strategy, which made its research accessible to non-experts, contributed to its dizzying success, according to Robb Wilson, founder of the AI software startup OneReach.ai and an AI expert.

“Having this technology available to technologists was one thing. Offering it in a chat user interface and allowing non-developers to start playing with it ignited a conversation,” he said.

Sam Altman, a 37-year-old businessman and former head of startup accelerator Y Combinator, founded OpenAI in late 2015.

From the beginning, the company has relied on funding from notable individuals like LinkedIn co-founder Reid Hoffman, investor Peter Thiel, and Musk.

The multi-billionaire was a member of OpenAI’s board until 2018, when he resigned to focus on his electric vehicle startup, Tesla.

Ilya Sutskever, a former Google executive and machine learning expert, now leads a team of computer scientists and researchers at the business.

OpenAI did not react to AFP’s questions, but a straightforward question on ChatGPT indicated that the company employed over 200 people by 2021.

Despite the buzz surrounding ChatGPT, the company has not yet established a sustainable revenue stream.

This week, co-founder Greg Brockman announced that a premium version of ChatGPT was in the works, even though the firm was founded as a charity and has now transitioned to a “capped for-profit” status to attract more investors.

To cover its astronomical costs, the company has to seek funds actively.

In an early December Twitter exchange with Musk, Altman admitted that OpenAI spends several US cents on each interaction on ChatGPT.

According to estimates by Tom Goldstein, an associate professor in the University of Maryland’s computer science department, the company is shelling out $100,000 a day for its bot, or nearly $3 million a month.

Even though “either way, it’s not cheap,” Goldstein acknowledged that partnering with Microsoft, which offers the firm its remote computing services, might save costs.

“Some say it’s wasteful to pour these kinds of resources… into a demo,” he added.

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