OpenAI’s latest AI model, code-named Orion, is reportedly set to debut by December, with limited access initially granted to a few corporate partners, according to sources. Unlike previous releases available broadly on ChatGPT, Orion will first be shared with select companies, including key partner Microsoft. Engineers at Microsoft are preparing to deploy Orion on Azure by November, suggesting early access could be imminent.
Although Orion is seen as the successor to GPT-4, OpenAI has yet to confirm if the model will officially carry the GPT-5 designation. Publicly, OpenAI has downplayed the reports, with CEO Sam Altman dismissing them as “fake news.” An OpenAI spokesperson later clarified that the company has “no plans to release a model code-named Orion this year,” but they confirmed a commitment to releasing new technology.
Sources indicate that Orion could be up to 100 times more powerful than GPT-4 and separate from OpenAI’s o1 reasoning model, launched in September. Orion’s development has likely involved synthetic data generated by o1, referred to internally as “Strawberry.” OpenAI celebrated completing Orion’s training last month, which coincides with a cryptic post by Altman hinting at the model’s arrival, mentioning his excitement for “winter constellations.”
Orion is expected to advance OpenAI’s goal of creating a model capable of artificial general intelligence (AGI), a significant leap from current large language models. The prospect of Orion has drawn speculation, both for its potential capabilities and its selective release strategy, signalling OpenAI’s commitment to carefully refining its technology for high-level applications.
OpenAI has appointed Aaron Chatterji as its first chief economist. Chatterji, a professor at Duke University and former chief economist at the US Commerce Department, will lead research on the economic impact of AI technologies. His focus will include AI’s potential influence on economic growth and employment trends.
Chatterji played a key role in coordinating the Biden administration’s implementation of the 2022 CHIPS Act, which allocated $280 billion towards developing the country’s semiconductor industry. His expertise and political network could benefit OpenAI as it explores designing chips internally.
The announcement also included another significant hire, with Scott Schools joining as chief compliance officer. Schools, previously at Uber and a former associate deputy attorney general, will oversee legal compliance and ethical practices at OpenAI.
These strategic hires reflect OpenAI’s growing ambition to lead AI development responsibly while expanding into new areas, such as chip design, amidst increasing regulatory attention.
Bain & Company announced it is expanding its partnership with OpenAI to offer AI tools like ChatGPT to its clients. The firms previously formed a global alliance to introduce OpenAI technology to Bain’s clients, and the consultancy has now made OpenAI platforms, including ChatGPT Enterprise, available to its employees worldwide.
Bain is also setting up an OpenAI Centre of Excellence, managed by its own team, to further integrate AI solutions. The partnership will initially focus on developing custom solutions for the retail and healthcare life sciences industries, with plans for expansion into other sectors.
While Bain did not disclose financial details, around 50 employees will be dedicated to this collaboration, as reported by the Wall Street Journal.
Dane Stuckey, former Chief Information Security Officer (CISO) of Palantir, has been appointed as the new CISO at OpenAI, working alongside head of security Matt Knight. Stuckey made the announcement in a post on social media, expressing his excitement to help secure OpenAI’s technologies as they continue to grow in use and impact.
Stuckey, who joined Palantir in 2014, brings extensive experience in digital forensics and incident response, having worked in both commercial and government roles. His background may prove valuable as OpenAI continues to deepen its partnerships with the United States Department of Defense, with whom it has collaborated on various cybersecurity projects.
OpenAI has been expanding its security efforts in recent months, following the appointment of former National Security Agency head Gen. Paul Nakasone as a board member. The company has also lifted its ban on selling AI technology to the military, signalling a strategic shift towards government contracts.
In addition to Stuckey’s appointment, OpenAI has posted a new job listing for a head of trusted compute and cryptography, highlighting its commitment to developing secure AI infrastructure to protect its technologies and users.
Sebastien Bubeck, Microsoft’s vice president of GenAI research, is leaving the company to join OpenAI, the AI startup behind ChatGPT. Microsoft has not provided details on the role Bubeck will assume at OpenAI but has confirmed it will continue its relationship with him through its backing of the company.
While Bubeck did not respond to requests for confirmation, Microsoft stated that he is departing to further his work on artificial general intelligence (AGI). Despite his exit, the majority of his team working on Microsoft’s smaller Phi large language models (LLMs) will stay on to continue their work.
This follows a series of recent departures from OpenAI, including longtime chief technology officer Mira Murati. However, OpenAI CEO Sam Altman has denied that these exits are linked to any planned restructuring of the company.
Bubeck’s departure marks a significant shift in Microsoft’s AI research landscape but highlights ongoing collaboration with OpenAI, with whom it shares a deep investment in the future of AGI.
OpenAI‘s head of media partnerships, Varun Shetty, recently stated that the company does not intend to share advertising revenue from its SearchGPT product with publishers. During his address at the Twipe Digital Growth Summit in Brussels, Shetty highlighted OpenAI’s belief that it can provide value to publishers by driving significant traffic from new audiences rather than offering financial compensation. He also acknowledged the importance of a mutually beneficial relationship and indicated that OpenAI is exploring ways to ensure publishers find enough value to remain included in SearchGPT results.
Varun Shetty compared OpenAI’s approach to that of Google’s AI Overviews, which have been criticised for diminishing publishers’ visibility in search results. In contrast, the AI-powered search engine Perplexity has established revenue-sharing agreements with multiple publishers, and Microsoft has announced plans to pay publishers for content featured by its productivity assistant, Copilot. Currently, in an experimental phase, SearchGPT aims to provide answers in natural language while clearly indicating sources. OpenAI intends to integrate SearchGPT into its flagship ChatGPT product by the end of the year.
Shetty stressed the need to balance user experience with publisher needs, noting that while users seek answers, they also want to verify information. He assured publishers they could opt out of SearchGPT results if desired, and any publisher wanting to participate only needs to permit OpenAI’s search bot on their site. He emphasised that SearchGPT has the potential to drive significant traffic without complicating the decision-making regarding content training.
In addition to discussing SearchGPT, Shetty expressed how OpenAI could assist the news industry, noting that while audiences are not interested in AI-generated news, AI can help streamline journalistic tasks, such as story recommendations and multimedia management. He also hinted at advancements in the next GPT model, which will enable more complex user requests, enhancing its usefulness for various applications.
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.
