So the non-profit retains control but we all know that Altman controls the board of the non-profit and I'd be shocked if he won't have significant stock in the new for-profit (from TFA: "we are moving to a normal capital structure where everyone has stock"). Which means that regardless of whether the non-profit has control on paper, OpenAI is now even better structured for Sam Altman's personal enrichment. No more ca…
Evolving OpenAI's Structure
231–240 of 746 posts
Re: Evolving OpenAI's Structure
#232"We made the decision for the nonprofit to retain control of OpenAI after hearing from..." [CHIEF LAW ENFORCEMENT OFFICERS IN CALIFORNIA AND DELAWARE] This indicates that they didn't actually want the nonprofit to retain control and they're only doing it because they were forced to by threats of legal action.
Re: Evolving OpenAI's Structure
#233Earlier quoted context omitted.
Well I think you’re correct that they know the jig is up, but I would say they know the AI bubble is about to burst so they want to cash out before that happens. There is little to no money to be made in GAI, it will never turn into AGI, and people like Altman know this, so now they’re looking for a greater fool before it is too late.
AI companies are already automating huge swaths of document analysis, customer service. Doctors are straight up using ChatGPT to diagnose patients. I know it’s fun to imagine AI is some big scam like crypto, but you’d have to be ignoring a lot of genuine non hype economic movement at this point to assume GAI isn’t making any money. Why does the forum of an incubator that now has a portfolio that is like 80% AI so rou…
When the Internet was developed they didn't imagine the world wide Web.
When cars started to get popular people still thought there would be those who are going to stick with horses.
I think you're right on the AI we're just on the cusp of it and it'll be a hundred times bigger than we can imagine.
Back when oil was discovered and started to be used it was about equal to 500 laborers now automated. One AI computer with some video cards are now worth x number of knowledge workers. That never stop working as long as the electricity keeps flowing.
Re: Evolving OpenAI's Structure
#234Earlier quoted context omitted.
Sounds a lot like "Google+ will catch Facebook in no time". OpenAI has been on a winning streak that makes ChatGPT the default chatbot for most of the planet. Everybody else like you describe is trying to add some AI crap behind a button on a congested UI. B2B market will stay open but OpenAI has certainly not peaked yet.
Social media has the benefit of network effects which is a pretty formidable moat. This moat is non-existent when it comes to Open AI.
All dissidents went into Little Wadyia.
When the Dictator himself visited it, he started to fake his name by copying the signs and names he saw on the walls. Everyone knew what he was.
Internet social networks are like that.
Now, this moat thing. That's hilarious.
Re: Evolving OpenAI's Structure
#235Earlier quoted context omitted.
ask 10 people on the street about chatgpt or gemini and see which one they know
thats just brand recognition. The fact that people know Coca Cola doesnt mean they drink it.
That name recognition made Coca Cola into a very successful global corporation.
Re: Evolving OpenAI's Structure
#236Earlier quoted context omitted.
And yet the analysis is spot on. Gemini and Claude are both clearly better, today.
there are plenty of things that I simply cannot use Gemini for
I guess Gemini just refused because of a poor filter for sensitive content. But still, it was annoying.
Re: Evolving OpenAI's Structure
#237Earlier quoted context omitted.
OpenAI (or, more specifically, Chat GPT) is CocaCola, not Facebook. They have the brand recognition and consumer goodwill no other brand in AI has, incredibly so with school students, who will soon go into the professional world and bring that goodwill with them. I think better models are enough to dethrone OpenAI in API, B2C and internal enterprise use cases, but OpenAI has consumer mindshare, and they're going to b…
> who will soon go into the professional world and bring that goodwill with them. ...Until their employer forces them to use Microsoft Copilot, or Google Gemini, or whatever, because that's what they pay for and what integrates into their enterprise stack. And the new employee shrugs and accepts it.
Re: Evolving OpenAI's Structure
#238Earlier quoted context omitted.
Or they consider themselves to have low(er) chance of winning. They could think either, but they obviously can't say the latter.
OpenAI is winning in a similar way that Apple is winning in smartphones. OpenAI is capturing most of the value in the space (generic LLM models), even though they have competitors who are beating them on price or capabilities. I think OpenAI may be able to maintain this position at least for the medium term because of their name recognition/prominence and they are still a fast mover. I also think the US is going to b…
Switching from ChatGPT to the many competitors is neither expensive nor painful.
Re: Evolving OpenAI's Structure
#239Earlier quoted context omitted.
But didn't they spend $9 billion? If I have a machine that magically turns $9 billion of investor money into $4 billion in revenue, I need to have a pretty awesome story for how in the future I am going to be making enormous piles of money to pay back that investment. If it looks like frontier models are going to be a commodity and it is not going to be winner-take-all... that's a lot harder story to tell.
Most of that 9 billion was spent on training new models and on staff. If they stopped spending money on R&D, they would already be profitable.
In this niche you can be irrellevant in months when your models drop behind.
Re: Evolving OpenAI's Structure
#240Imagine having a mission of “ensure[ing] that artificial general intelligence (AGI) benefits all of humanity” while also believing that it can only be trusted in the hands of the few > A lot of people around OpenAI in the early days thought AI should only be in the hands of a few trusted people who could “handle it”.
There is a lot to criticize about OpenAI and Sama, but this isn't it.