The recent drama at OpenAI, wherein the AI company fired its CEO Sam Altman, has sent waves across the entire industry. A report by GlobalData, a data and analytics company, revealed that enterprises planning to integrate generative AI into their operations will face challenges due to this major transition at OpenAI. Enterprises that will integrate generative AI soon are set to grow from $1.8 million in 2022 to $33 billion by 2027.
Beatriz Valle, Senior Technology Analyst at GlobalData, stated that the series of events have highlighted a rift between two sections in the world of AI. He added, “The news has highlighted the growing rift between the proponents of a more measured rollout of the technology, that emphasizes safety guardrails above commercialisation and monetisation of solutions. This could have deep-reaching implications for the market.”
Valle also explained that OpenAI is controlled by a non-profit board that has no fudiciary obligations towards stakeholders or investors. The ChatGPT-maker was also in talks with investors seeking a valuation of $86 billion. The report revealed that the technology has enormous potential, which is why investors were willing to enter talks for this level of valuation.
OpenAI has now named Emmett Shear, former Twitch CEO, as the interim CEO of OpenAI. On the other hand, Sam Altman along with Greg Brockman, the co-founder of OpenAI who was also fired from the company, will head an AI research project at Microsoft.
Valle hints that there is a chance that one of the most high-profile AI company, OpenAI, might face ramifications of these actions. Many employees including seniors have threatened to leave the company after the departure of Altman. Since Microsoft CEO Satya Nadella is not very happy with the decision, the company might pull back and lead OpenAI to dry up financially.
Valle stated, “OpenAI will now be free to pursue its own vision. But at what cost? Hundreds of employees have now signed a letter asking the board to reinstate Altman as CEO. At present, it is hard to know what the implications for other key players will be, as well as for the industry at large. The events of the last few days could have a lasting impact on the overall GenAI market.”
First appeared on www.businesstoday.in