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.
Apple has reportedly exited negotiations to participate in OpenAI’s upcoming funding round, expected to raise around $6.5 billion. The round is anticipated to close next week, according to the Wall Street Journal. Other major tech companies, including Microsoft and Nvidia, are still engaged in talks to invest.
Microsoft is expected to contribute approximately $1 billion to the round, after previously investing $13 billion into OpenAI. The funding round is part of the tech industry’s growing interest in generative AI, which has sparked an arms race among companies to secure a competitive edge.
OpenAI‘s fundraising is projected to value the company at over $100 billion, largely driven by the success of ChatGPT. The AI model’s launch in late 2022 encouraged companies across multiple sectors to invest heavily in the technology to remain competitive.
OpenAI declined to comment on the news, while Apple did not respond to requests for clarification regarding its withdrawal from the negotiations.
SoftBank’s Vision Fund plans to invest $500 million in OpenAI’s latest funding round, according to a report by The Information. While SoftBank declined to comment, OpenAI did not respond immediately. The AI company is seeking to raise $6.5 billion through convertible notes, as reported by Reuters earlier this month.
Before SoftBank’s investment, OpenAI was valued at $150 billion, although this valuation is subject to change based on the company’s ability to restructure its corporate structure and lift the profit cap for investors. This marks SoftBank’s first investment in the firm led by Sam Altman.
OpenAI is reportedly considering a shift to a for-profit corporation that would function independently of its non-profit board. This transition aims to provide more flexibility and access to capital as the company seeks to enhance its business model and attract further investments.
OpenAI’s board is considering compensating CEO Sam Altman with equity, though no decision has been made, according to board chair Bret Taylor. The idea emerged as part of a broader conversation on restructuring the company’s core business into a for-profit benefit corporation. Altman holds no stake in OpenAI despite co-founding the organisation in 2015. His initial decision to forgo equity was rooted in the need for a majority of disinterested directors on the board.
The restructuring plan suggests that Altman could finally receive equity in the new for-profit entity. However, this transition comes amid sudden changes at the company, including the departure of several key executives. Speaking at a conference in Italy, Altman dismissed any connection between these exits and the ongoing discussions about the corporate restructuring.
As OpenAI navigates this pivotal transformation, it is also amid negotiations to raise $6.5 billion, with support expected from major players such as Microsoft, Nvidia, and Apple. The company’s potential valuation of $150 billion hinges on successfully executing its restructuring, which may include lifting a cap on investor returns.
Why does it matter?
Once restructured, the for-profit entity would no longer be under the control of the non-profit board that has overseen OpenAI since its inception. However, the non-profit organisation will continue to exist, holding a minority stake in the newly formed for-profit company. The shift signals a significant evolution for the AI giant as it seeks to attract further investment and scale its ambitions.
OpenAI’s official press account on X was hacked by cryptocurrency scammers, promoting a fraudulent blockchain token, ‘$OPENAI.’ The scammers posted a message claiming the fake token would grant users access to future OpenAI beta programs. The post linked to a phishing website designed to steal cryptocurrency wallet credentials from unsuspecting users. Despite the scam being evident, the post and the associated site remained active, with comments disabled to make the hack less noticeable.
This incident is part of a larger pattern, with OpenAI leadership accounts also targeted in similar phishing campaigns earlier this year. In June 2023, OpenAI CTO Mira Murati’s account was hacked, posting a nearly identical message about the non-existent “$OPENAI” token. Other key OpenAI staff, such as chief scientist Jakub Pachocki and researcher Jason Wei, were also hacked recently, further exposing vulnerabilities.
Cryptocurrency scams targeting high-profile X accounts have become increasingly common. In previous years, accounts belonging to Apple, Elon Musk, and Joe Biden were compromised to promote scams. These fraudulent campaigns often use fake offers or phishing schemes to steal funds from victims by tricking them into sending cryptocurrency to scam wallets.
Cryptocurrency scams have cost United States citizens $5.6 billion in 2023 alone, a significant increase from the previous year. With over 50,000 cases reported in the first half of 2024, losses have already reached $2.5 billion, according to the Federal Trade Commission, marking an alarming rise in the threat posed by such scams.
