OpenAI, led by Sam Altman, is exploring a move to transition from a non-profit to a for-profit company, according to Bloomberg News. Early discussions with the California attorney general’s office aim to alter OpenAI’s corporate structure, signalling a significant shift in the governance of the AI research pioneer. Originally founded in 2015 as a non-profit, OpenAI’s new direction could open the door to increased investment opportunities.
The potential change in status would mark a strategic shift for the company, which developed the popular AI tool ChatGPT. OpenAI’s connection with Microsoft, which invested heavily in the company, has been a key factor in its growth. In September, reports emerged that OpenAI was already contemplating restructuring as a for-profit benefit corporation, with a new structure aimed at enhancing business opportunities while keeping its non-profit arm involved.
The non-profit branch of OpenAI would continue to exist and hold a minority stake, allowing the organisation to maintain some of its founding mission. This balance could appeal to investors while retaining a foothold in its original purpose of ethical AI development. OpenAI’s funding has also surged recently, including a $6.6 billion funding round, potentially valuing the firm at $157 billion.
With substantial backing and increased investor interest, OpenAI’s shift could cement its position as one of the world’s most valuable private companies. The move reflects broader trends in AI, where companies are aligning profit goals with technological innovation to remain competitive in a rapidly evolving market.
Kioxia, backed by Bain Capital, announced on Tuesday that it anticipates a 2.7-fold increase in demand for flash memory over the next five years, fueled by the surge in AI. After facing significant challenges in the memory chip market, the company is preparing to expand production capacity at its new facility in Kitakami, located in Iwate prefecture, north of Tokyo. Although production at this facility was initially scheduled to start last year, it has been postponed until autumn 2025.
The chipmaker, formerly known as Toshiba Memory, has experienced significant changes, including its separation from the troubled Toshiba Corporation under Bain’s leadership. Kioxia continues to manufacture chips in Yokkaichi, Mie prefecture and recently commenced sample shipments of its latest NAND flash memory. The growing demand for AI is driving investments in server technology and is expected to rejuvenate interest in smartphones and PCs.
Executive Vice President Tomoharu Watanabe stated that the new Kitakami factory, set to come online next autumn, will provide the necessary capacity to meet increasing demand. In February, the Japanese government pledged up to $1.64 billion in subsidies to Kioxia and partner Western Digital to support capacity expansion at both the Yokkaichi and Kitakami facilities. Meanwhile, Bain Capital has cancelled plans for an initial public offering for Kioxia after investors expressed concerns about its valuation. Kioxia’s evolution is being closely watched as Japan aims to revitalise its once-dominant semiconductor industry.
Apple is set to integrate OpenAI’s ChatGPT with Siri and other iOS features, rolling out in December with iOS 18.2. Beta testers of iOS 18.2 have discovered an option in the Settings app allowing users to subscribe directly to ChatGPT Plus, OpenAI’s premium plan, for $20 a month. This move offers Apple users a streamlined way to access ChatGPT‘s advanced features, which include more capable AI models and additional voice and image options.
Free users of ChatGPT will still face some limitations, including restricted access to OpenAI‘s most advanced models and fewer image generations per day. However, OpenAI could see a surge in paid subscriptions from the partnership as Apple’s exposure could drive substantial user interest in ChatGPT Plus.
The specifics of the financial terms between Apple and OpenAI are unclear. Apple isn’t reportedly paying OpenAI directly, relying instead on enhanced exposure, though questions remain about any potential revenue sharing. Apple’s broader AI plans indicate it will also include models from other developers in future updates, possibly incorporating Google’s Gemini.
In the background, OpenAI is working to secure additional funding amidst a period of rapid change, including the departure of key executives and a recent $6.6 billion funding round, which Apple reportedly declined to join following unexpected shifts at OpenAI.
The UK’s Competition and Markets Authority (CMA) has indicated that a proposed merger between Vodafone and Three could proceed, contingent on the companies making commitments to protect consumer prices and enhance the nation’s 5G infrastructure. The regulator, initially concerned that combining the two networks could lead to higher costs and reduced competition, has now concluded that these issues could be mitigated if Vodafone and Three agree to specific remedies.
Vodafone has responded positively to the CMA’s findings, expressing optimism that the proposal offers a clear path to regulatory approval. The telecom giants have emphasised that the merger would benefit both consumers and businesses, with plans to bring advanced 5G access to schools, hospitals, and other vital sectors across the UK.
The CMA’s investigation, which began in January, is now focused on ensuring the merged entity honors price promises on certain data plans for at least three years. Additionally, the companies would be required to maintain existing deals with smaller Mobile Virtual Network Operators (MVNOs) like Sky Mobile, Lyca, and Lebara. Industry analysts see the CMA’s conditional support as a positive step, potentially leading to a stronger three-player market alongside existing competitors EE and O2.
With public feedback on the proposal open until 12 November, a final decision is expected from the CMA by 7 December.
At TechCrunch Disrupt 2024, data management leaders advised AI-driven businesses to focus on incremental, practical applications rather than expansive, large-scale projects. Chet Kapoor, CEO of DataStax, stressed that AI’s effectiveness relies heavily on having robust, unstructured data at scale, but warned companies against rushing into overly ambitious initiatives. The discussion featured insights from Kapoor, Vanessa Larco of NEA, and Fivetran’s CEO George Fraser, all of whom advocated a targeted approach to data application in generative AI.
Rather than applying AI across all company functions immediately, Larco suggested that firms begin with well-defined objectives. Identifying relevant data is key, she said, and applying it selectively can avoid the pitfalls of costly errors. Companies looking to capitalise on AI should ‘work backwards’, focusing first on the issue to be solved and gathering the specific data required, Larco added.
Fraser underscored the importance of addressing current needs before planning for broader scaling. Many innovation costs, he pointed out, stem from projects that fail rather than those that succeed. His advice: ‘Only solve the problems you have today’.
Kapoor likened today’s generative AI era to the early days of mobile apps, emphasising that most AI projects are currently in exploratory stages. He believes next year will see transformational AI applications begin to shift company trajectories.
US tech companies have raised concerns over a proposed data protection law in Vietnam, warning it could restrict their ability to grow in one of Asia’s largest digital markets. The draft law, which is under discussion in Vietnam’s parliament, aims to tighten controls on data protection, limit data transfers abroad, and give authorities easier access to information. Major industry players, represented by the Information Technology Industry Council, argue that these restrictions could hinder companies like Meta, Google, and Equinix from effectively reaching their large Vietnamese user base and building new data centres.
Vietnam, home to 100 million people, is an attractive market for tech and social media companies and has ambitions to expand its data centre industry through foreign investments. However, the new law would require companies to obtain prior authorisation before transferring “core” or “important” data abroad—terms that critics say are vaguely defined. In addition, companies may be required to share data with the government in cases broadly categorised as being in the “public interest.”
The US tech sector has voiced opposition, citing an “undue expansion of government access” that could create significant compliance challenges. The American Chamber of Commerce in Hanoi has joined the call, urging lawmakers to reconsider the legislation’s quick adoption, which is scheduled for a vote on November 30. Industry analysts are watching closely, as the law could impact foreign investment plans, including Google’s potential new data centre in southern Vietnam.
Nvidia CEO Jensen Huang has urged South Korea’s SK Hynix to speed up the delivery of its next-generation HBM4 memory chips by six months, according to SK Group Chairman Chey Tae-won. Initially scheduled for the latter half of 2025, the HBM4 chips are in high demand as Nvidia’s GPUs require them for advancing AI technology. Nvidia, which holds a dominant share of the AI chip market, relies on SK Hynix’s high-bandwidth memory to support AI processing.
Facing growing competition from Samsung and Micron, SK Hynix is working to deliver its latest HBM3E chips this year, with plans to release improved 16-layer versions early next year. Samsung has also announced progress on a new supply deal and aims to roll out its HBM4 products by the second half of 2024.
Shares of SK Hynix surged 5.1% on the news, reflecting strong investor confidence in its strategic response to the booming demand for advanced memory technology.
Disney is establishing a new division, the Office of Technology Enablement, dedicated to advancing the company’s use of AI and mixed reality (XR). Led by Jamie Voris, Disney’s former chief technology officer for its film studio, the unit will oversee projects across Disney’s film, television, and theme park segments to leverage these rapidly evolving technologies. This group will focus on coordinating various initiatives without centralising them, ensuring each project aligns with Disney’s broader technological strategy.
The new office, which will ultimately expand to about 100 employees, comes as Disney looks to tap into cutting-edge AI and augmented reality (AR) applications. Disney Entertainment Co-Chairman Alan Bergman emphasised the importance of exploring AI’s potential while mitigating risks, signaling Disney’s intention to create next-generation experiences for theme parks and home entertainment. Voris’s leadership will be succeeded by Eddie Drake as Disney’s new film studio CTO.
Disney has been actively building expertise in AR and virtual reality (VR) as technology companies like Meta and Apple compete in the emerging AR/VR market. The company also rehired Kyle Laughlin, a specialist in these technologies, as Senior VP of Research and Development for Disney Imagineering, its theme park innovation branch. By assembling a team with expertise in advanced tech, Disney aims to create immersive, engaging experiences for its global audience.
Google has won a trademark lawsuit brought by Shorts International, a British company specialising in short films, over the use of the word ‘shorts’ in YouTube‘s short video platform, YouTube Shorts. London’s High Court found no risk of consumer confusion between Shorts International’s brand and YouTube’s platform, which launched in 2020 as a response to TikTok‘s popularity.
Shorts International, known for its short film television channel, argued that YouTube Shorts infringed on its established trademark. However, Google’s lawyer, Lindsay Lane, countered that it was clear the ‘Shorts’ platform belonged to YouTube, removing any chance of brand confusion.
Judge Michael Tappin ruled in favour of Google, stating that the use of ‘shorts’ by YouTube would not affect the distinctiveness or reputation of Shorts International’s trademark. The court’s decision brings the legal challenge to a close, dismissing all claims of infringement.
Chinese online retailer Temu is exploring joining a European Union-led initiative to combat counterfeit goods, which includes major retailers such as Amazon, Alibaba, and brands like Adidas and Hermes. Temu is scheduled to present at an upcoming meeting on 11 November as a ‘potential new signatory’ to the Memorandum of Understanding on counterfeits, a voluntary anti-counterfeit agreement supported by the European Commission.
Temu’s interest in the initiative coincides with increasing regulatory pressure from the European Union. The European Commission recently launched an investigation into Temu over potential breaches of EU laws prohibiting the sale of illegal goods, following an earlier request for information under the Digital Services Act (DSA), a law governing large online platforms. In May, the Commission designated Temu a ‘very large online platform,’ requiring it to take stronger measures against illegal content and counterfeits.
As a subsidiary of China‘s PDD Holdings, Temu has rapidly expanded in Europe and the United States, luring customers with low prices and a ‘shop like a billionaire’ slogan. Its platform offers items like clothing and accessories that often resemble popular branded products at significantly lower prices. Some industry insiders have expressed concerns that Temu’s entry into the anti-counterfeit network could impact the credibility of the initiative.
