OpenAI has teamed up with Hearst Communications Inc. to incorporate content from its magazines and newspapers into the ChatGPT chatbot. This partnership, announced on Tuesday, enables Hearst to license material from well-known publications such as Esquire, Cosmopolitan, and Elle, along with more than 40 newspapers for use in OpenAI’s products. The content will be displayed in ChatGPT with proper attribution, providing transparency and easy access to the original sources.
Jeff Johnson, President of Hearst Newspapers, highlighted the significance of including journalism from professional journalists in AI products as generative AI advances. He stated that this partnership enables Hearst’s trusted and curated content to enrich OpenAI’s offerings, resulting in more timely and relevant information.
OpenAI has been working to establish similar licensing agreements with a range of publishers, such as Condé Nast, News Corp., and Time magazine, to train its AI models and ensure access to authoritative information. Many of these agreements include commitments to provide news summaries with proper attribution. However, not all media outlets are on board; the New York Times filed a lawsuit against OpenAI in December, alleging the unauthorised use of its copyrighted articles. OpenAI has contested these claims, asserting that the newspaper is not presenting the full context of the situation.
OpenAI is expanding its global presence with plans to open new offices in key cities, including Singapore, Paris, and Brussels. These will add to its existing hubs in San Francisco, London, and Tokyo, positioning the company for broader international reach. The company’s efforts follow a substantial $6.6 billion funding round and leadership changes.
Oliver Jay, formerly of Asana and Dropbox, will lead OpenAI’s international operations from Singapore. The new Singapore office, expected to open by the end of the year, will serve as a hub for the Asia Pacific region. The company is actively hiring engineers to build out its team in the region, which has seen rapid growth in ChatGPT usage.
The decision to expand into Singapore is partly driven by the country’s strong engagement with AI technology. OpenAI noted that Singapore has one of the highest per capita uses of ChatGPT, with usage doubling since the start of the year. This new office will be OpenAI’s second in Asia, after Tokyo.
As part of the expansion, OpenAI is partnering with AI Singapore, a national programme that promotes the development and adoption of AI in the region. CEO Sam Altman highlighted Singapore’s leadership in AI and its role in tackling complex societal issues, as well as fostering economic growth.
Elon Musk has reignited his legal fight with OpenAI, accusing the company’s co-founders of manipulating him into investing in the nonprofit startup before turning it into a for-profit business. Musk claims they enriched themselves by draining OpenAI’s key assets and technology. OpenAI, however, has dismissed these claims, describing the lawsuit as part of Musk’s efforts to gain a competitive edge.
OpenAI, which transitioned to a for-profit subsidiary in 2019, attracted billions in outside funding, including from Microsoft. Musk argues the company deviated from its original mission, but OpenAI maintains it remains committed to developing safe and beneficial AI. The startup also suggested Musk’s departure came after his attempt to dominate the organisation failed.
OpenAI has had a turbulent year with leadership changes and rapid growth. The company’s headcount more than doubled, and despite losing key figures, it remains a major player in AI innovation. Recent investments pushed OpenAI’s valuation to $157 billion, underscoring continued investor confidence.
Musk’s ongoing rivalry with OpenAI coincides with his other AI ventures, including xAI, which he launched in 2023. He’s also facing allegations in a Delaware lawsuit accusing his AI company of draining talent and resources from Tesla, potentially harming shareholders.
OpenAI, known for its AI models, appears to be exploring the semiconductor manufacturing sector, raising questions about the feasibility of building wafer fabrication plants. Reports recently surfaced about CEO Sam Altman’s discussions with executives from major chip manufacturers, including TSMC and Samsung, during his trip to Asia last year. Altman proposed an ambitious $7 trillion plan to construct 36 new wafer fabs and data centres, aiming to produce AI chips funded by the United Arab Emirates. He believes these facilities would support the burgeoning demand for AI capabilities.
The investment Altman suggested is staggering, amounting to a quarter of the annual output of the US economy. However, the timeline for establishing these fabs is lengthy, as it would take several years to meet OpenAI’s growing computing power requirements. TSMC, while approached for the project, found the proposal too aggressive and risky, noting that even a few additional wafer fabs would entail significant capital and risk.
Building a wafer fab is an enormous undertaking, often costing hundreds of billions of dollars due to various factors. The expenses stem from land acquisition, facility construction, equipment procurement, and ongoing operational costs. Advanced lithography machines and other essential equipment represent substantial financial commitments, while research, maintenance, and talent training add to the complexity. Current estimates place the cost of modern fabs in the billions; for instance, Intel’s factories in Arizona are expected to cost around $15 billion each, and Samsung’s Texas fab is projected at $25 billion.
Moreover, the cost of constructing a wafer fab varies by region. In Asia, established supply chains, available talent, and supportive policies contribute to lower costs, whereas building in Europe, the US, and the Middle East can be more expensive due to the necessity of importing technology and developing a comprehensive supply chain. Overall, OpenAI’s ambitions in the semiconductor space highlight the significant challenges and investments required to succeed in this critical industry.
Tim Brooks, one of the co-leads on OpenAI’s video generation tool, Sora, has left the company for Google. Brooks, who had been working on Sora since January 2023, announced on X that he will join Google DeepMind to focus on video generation technologies and ‘world simulators.’ His departure comes as Sora faces technical challenges, reportedly taking over 10 minutes to generate a one-minute video, leaving it behind competitors like Luma and Runway.
Google DeepMind CEO Demis Hassabis welcomed Tim Brooks, highlighting his contribution to the development of world simulators, which aim to create virtual environments for a variety of applications, from filmmaking to AI training. DeepMind has been developing models like Genie, which generate interactive virtual worlds using images, photos, and sketches to create action-controllable environments.
Tim Brooks’ departure is part of a growing trend of high-profile exits from OpenAI. Key figures like CTO Mira Murati and research scientist Andrej Karpathy have also left the company in recent months. While OpenAI has demonstrated its video generation tool, Sora, to Hollywood studios and filmmakers, it has yet to secure a significant production partnership, leaving its future uncertain amid stiff competition.
OpenAI, the company behind ChatGPT, has raised $6.6 billion in new funding, pushing its valuation to an estimated $157 billion. The funding round saw participation from major investors such as Microsoft, Nvidia, Thrive Capital, and Khosla Ventures. Despite recent restructuring and the sudden exit of longtime Chief Technology Officer Mira Murati, investor confidence remains high, with many believing in the company’s strong growth potential. Thrive Capital alone has committed $1.2 billion and may invest another $1 billion next year if revenue targets are met.
OpenAI is in the midst of restructuring, moving away from its non-profit origins towards a more commercial, for-profit model. The recent funding could convert into equity if this transition succeeds. CFO Sarah Friar suggested a potential buyback of employee shares, though no concrete plans have been set. Investors have also secured protections, allowing them to renegotiate the valuation if the restructuring is not finalised within two years.
Since launching ChatGPT, OpenAI has seen rapid growth, attracting 250 million weekly active users. Despite incurring heavy losses, the company anticipates generating $3.6 billion in revenue this year, with projections reaching $11.6 billion in 2024. As it scales, OpenAI remains committed to its pursuit of artificial general intelligence (AGI), aiming to advance AI capabilities while moving towards profitability.
Microsoft has officially launched the OpenAI library for .NET, offering comprehensive support for OpenAI’s REST API and flagship models like GPT-4.0. Designed to simplify integration for developers, the library enables the use of OpenAI and Azure OpenAI services within .NET applications.
Following a beta release in June, the stable version is now available through NuGet. It includes full support for models such as GPT-4.0 mini and o1-preview, while providing flexibility for developers to create extensions and additional libraries for specific needs.
The library also includes both synchronous and asynchronous APIs, allowing developers to choose between different patterns for their applications. Other key features include streaming completions for more dynamic interactions, and compatibility with .NET Standard 2.0, ensuring broad usage across different platforms.
This open-source library, available on GitHub, complements OpenAI’s existing libraries for Python and JavaScript, making it easier for developers to work with OpenAI technologies in .NET environments.
OpenAI has launched several new tools aimed at making it easier for developers to create applications powered by its AI technology. Among the key innovations is a real-time tool that allows developers to build AI voice applications using a single set of instructions, streamlining what was previously a multi-step process.
The startup, supported by Microsoft, also introduced a fine-tuning tool that enables developers to improve AI model responses using both text and images. This enhancement boosts capabilities like visual search and object detection, potentially benefiting sectors such as autonomous vehicles.
OpenAI has forecast a rapid rise in revenue, expecting to generate $11.6 billion next year, driven by businesses building their own AI apps using its technology. With competition from tech giants like Google heating up, OpenAI is focused on rolling out advanced tools to retain its edge in the generative AI race.
Other newly unveiled features include a method for smaller AI models to learn from larger ones, and a ‘Prompt Caching’ system that can reduce development costs by reusing previously processed text, cutting expenses by up to half.
As global investors like Thrive Capital and Tiger Global invested $6.6 billion in OpenAI, the company is seeking more than just capital; it wants assurances that these investors will avoid funding five perceived competitors. The list includes rivals such as Anthropic, Elon Musk’s xAI, and Safe Superintelligence (SSI), co-founded by OpenAI’s Ilya Sutskever. These companies are in a race to develop large language models, which require substantial financial backing.
OpenAI is also focusing on AI applications, with firms like the search startup Perplexity and enterprise search company Glean highlighted as part of its strategy. This move reflects OpenAI’s intent to broaden its offerings for enterprises and end users. The company has ambitious revenue targets, aiming to increase its earnings from $3.7 billion this year to $11.6 billion by 2025, signalling a strong push for growth in the competitive AI landscape.
While OpenAI’s request for exclusive commitments from investors is not legally binding, it underscores the company’s strategy to capitalise on its strong market position in a highly competitive environment where securing funding is crucial. Typically, venture capitalists steer clear of investing in direct competitors, but OpenAI’s approach is somewhat atypical. The situation is further complicated by late-stage investors like SoftBank and Fidelity, which have invested in both xAI and OpenAI, blurring the lines in the competitive landscape. This dynamic highlights the challenges and complexities investors face in navigating the rapidly evolving AI sector.
OpenAI’s request does not affect its past investors or their existing investments but could influence future fundraising efforts for both OpenAI and its listed competitors. The Financial Times and Wall Street Journal were among the first to report on the names of the companies involved.
Durk Kingma, one of the lesser-known co-founders of OpenAI, has announced he is joining AI research company Anthropic. Kingma, who will work remotely from the Netherlands, expressed excitement about aligning with Anthropic’s mission to develop AI systems responsibly. However, he did not specify his exact role within the company.
Kingma, with a PhD in machine learning from the University of Amsterdam, played a crucial role in developing generative AI models like DALL-E and ChatGPT during his time at OpenAI. After leaving OpenAI in 2018, he rejoined Google Brain before its merger with DeepMind in 2023, while also working as an angel investor for AI startups.
Kingma’s hiring is part of a broader trend, with several key figures from OpenAI moving to Anthropic in recent months, including safety lead Jan Leike and co-founder John Schulman. Anthropic, led by former OpenAI VP Dario Amodei, continues to attract top talent as it positions itself as a more safety-conscious alternative in the AI industry.
