Hundreds of Big Technology readers have joined our premium tier for exclusive subscriber content, access to our events, and to support independent tech journalism. Try it for 20% off in year 1, or just $8 per month.

Get 20% off for 1 year

OpenAI Wants To Get Big Fast, And Four More Takeaways From a Wild Week in AI News

Ignore the flirty bot, OpenAI’s big strategic play became clearer this week.

In a season of big AI news, few weeks have felt more significant than this one. OpenAI introduced its new GPT-4o model, Google unveiled a deeper AI vision, and Apple dropped more hints ahead of a massive AI-themed WWDC event.

At Big Technology, we also hosted our first public event with Box CEO Aaron Levie, well-timed with the AI news. Our live podcast sold out — filling 130 seats, with scores more on the waitlist — and meeting so many of you was a thrill. You can see some photos below.

Amid the noise, here are the five core takeaways from the week, including some commentary from Levie on crucial developments the headlines seemed to miss:

OpenAI Wants to Get Big Fast

OpenAI cut the cost of using its newest GPT-4 model by 50% and made it twice as fast as the previous version. By doing so, it’s practically daring companies considering building with its technology to give it a chance, hoping to get big fast. ROI spreadsheets are likely getting reworked as we speak.

“We're nowhere near the point where a lowering of cost doesn't disproportionately impact what you can now build,” Levie said.

OpenAI’s strategy to get its technology in the hands of as many developers as possible — to build as many use cases as possible — is more important than the bot’s flirty disposition, and perhaps even new features like its translation capabilities (sorry). If OpenAI can become the dominant AI provider by delivering quality intelligence at bargain prices, it could maintain its lead for some time. That is, as long as the cost of this technology doesn’t drop near zero.

Upgrade to paid

Free ChatGPT-4o Is a Risky Bet With Upside

OpenAI is also betting that ChatGPT will get big fast, upgrading its free version by two generations to GPT-4o. That might disincentivize some users from paying $20 per month for ChatGPT Plus. But ChatGPT needs the jolt more than OpenAI needs the money.

ChatGPT’s growth has flatlined, and OpenAI’s latest announcement revived interest in the product. Sticking free ChatGPT users with an inferior bot would squander the buzz, so OpenAI is making ChatGPT-4o available to everyone for free. Hardcore users will likely remain on the paid version, looking for higher rate limits and other perks. But even if OpenAI loses a few Plus subscribers, the tradeoff should be worth it.

An Apple + OpenAI Partnership Is Brewing

OpenAI released a desktop app this week as well, surprisingly debuting it on Mac. Despite Microsoft funding OpenAI with billions of dollars, the company passed over Windows, telling Axios it’s debuting the app on Mac because that’s where most of ChatGPT’s users are. The partnership is further indication of a deepening bond between OpenAI and Apple, as reports indicate that Apple will build OpenAI’s GPT technology into its mobile iOS. A tight integration with Apple could leave OpenAI with a strong position in consumer technology via the iPhone and an ideal spot in enterprise via its partnership with Microsoft.

Managing these two relationships could be tricky for OpenAI. The folks in Redmond, who are building their own powerful LLMs, likely aren’t thrilled about being left out this week. Microsoft CEO Satya Nadella did not appear at OpenAI’s event, something he’s done in previous releases.

The Web Is Probably Going to Be Fine

Google will soon put “AI Overviews” on top of everyone’s search results, but the obituaries for the web are somewhat premature. Google, like Perplexity and Yahoo, will likely to show AI-generated results for only a certain percent of queries.

AI-generated answers aren’t a dramatic improvement from standard search in most cases (at least for now), and the data is telling. Bing still owns only 3.6% of the worldwide search market, even as its Copilot provides AI answers upon request. And so, the web will live on.

AI Safety In Limbo

OpenAI’s chief scientist Ilya Sutskever resigned this week, along with its ‘superalignment’ co-leader Jan Leike. It follows a pattern. After spending significant time listening to those concerned with safety, the AI industry seems to be paying them less attention. AI critics have, in some ways, sidelined themselves with fanciful arguments and arrogance. But as this technology gets more powerful, the safety conversation is going to grow more important. Though it will likely have to adjust to move forward.

After I asked Levie when all-powerful AI might arrive, he seemed relieved we haven't seen it so far. “We should probably be glad that we don't have this breakthrough AGI experience yet,” he said. “We actually need some time to just pace ourselves, frankly.”

Share

An auth product your entire company will love (sponsor)

Most auth products are built for developers, but the truth is - your whole company should love your auth.

Sales & support teams love using our user management dashboard and impersonation features.

Product managers love our user insights and churn reports.

CFOs love our reasonable pricing - we even include unlimited SAML connections.

Developers love that they can spend more time reading about the latest AI news, and less time on auth.

Ready for an auth upgrade?

Learn More

What Else I’m Reading, Etc.

Apple is probably going to put ChatGPT in its next mobile operating system [Bloomberg]

Siri is going to get better too [New York Times]

Microsoft wants AI staff in China to consider leaving [WSJ]

OpenAI and Reddit ink a partnership [Reuters]

AWS CEO Adam Selipsky is out [The Verge]

Advertise with Big Technology?

Reach 165,000+ plugged-in tech readers with your company’s latest campaign, product, or thought leadership. To learn more, write alex@bigtechnology.com or reply to this email.

Quote Of The Week

Her

One word tweet from OpenAI boss Sam Altman after his latest ChatGPT-4o bot relentlessly flirted with his employees in demos this week.

Number of The Week

190

Apple shares brushed past $190 this week, exceeding a level the company hadn’t hit since February, before falling just below. It’s a sign of market enthusiasm ahead of WWDC.

This Week on Big Technology Podcast: AI Scaling, Alignment, and the Path to Superintelligence — With Dwarkesh Patel

Dwarkesh Patel is the host of the Dwarkesh Podcast, where he's interviewed Mark Zuckerberg, Ilya Sustkever, Dario Amodei, and more AI leaders. Patel joins Big Technology to discuss the current state and future trajectory of AI development, including the potential for artificial general intelligence (AGI) and superintelligence. Tune in to hear Patel's insights on key issues like AI scaling, alignment, safety, and governance, as well as his perspective on the competitive landscape of the AI industry. We also cover the influence of the effective altruism movement on Patel's thinking, his podcast strategy, and the challenges and opportunities ahead as AI systems become more advanced. Listen for a wide-ranging and insightful conversation that grapples with some of the most important questions of our technological age.

You can listen on Apple, Spotify, or wherever you get your podcasts.

Scenes From Our Live Event with Box CEO Aaron Levie

Thank you to everyone who came out to our first public event on Wednesday, a sold out live podcast. It was one of the most fun episodes we've ever done, all about this week's AI announcements and their implications. The energy in the room was incredible, with Big Technology subscribers and new friends packing the room to capacity. The show will air next Wednesday on Big Technology Podcast.

Thanks again for reading. Please share Big Technology if you like it!

And hit that Like Button to help our like number get big fast!

My book Always Day One digs into the tech giants’ inner workings, focusing on automation and culture. I’d be thrilled if you’d give it a read. You can find it here.

Questions? News tips? Email me by responding to this email, or by writing alex@bigtechnology.com Or find me on Signal at 516-695-8680

Thank you for reading Big Technology! Paid subscribers get our weekly column, breaking news insights from a panel of experts, monthly stories from Amazon vet Kristi Coulter, and plenty more. Please consider signing up here.

Upgrade To Paid

© 2024 Alex Kantrowitz
548 Market Street PMB 72296, San Francisco, CA 94104
Unsubscribe