The AI space will never be a “winner-takes-all” market on account of “very big, well-funded, very competent competitors”, said OpenAI cofounder and chief executive Sam Altman in an interview with technology analysis platform, Stratechery.
The OpenAI chief’s remarks came in response to a question by technology analyst Ben Thompson about whether association with his company is the only way to become a part of the rapid AI buildout.
AI startups used to approach tech majors like Microsoft, Google, and Amazon for funding. They are now tapping the debt market for the immense capital needed to build the expansive infrastructure required to meet AI demand. Meanwhile, Big Tech firms are pumping up their AI muscles with an eye on the lucrative market.
Altman’s OpenAI and leading AI chipmaker Nvidia have been at the centre of several multi-billion-dollar deals in the buzzing space, sparking circular financing concerns and subsequent bubble fears.
Also Read: Doomsday or new dawn: what will Nvidia, OpenAI’s circular dealmaking bring
OpenAI would vie for as much AI market share as it can get, Altman said. “We’re certainly going to try to build a very heavily used product that adds a lot of value to a lot of people, and we’ve got ambitious plans there… my favourite historical analogy (for AI) is the transistor… I think it will just kind of seep everywhere into every consumer and enterprise product.”
Within a month, OpenAI has signed significant deals with Oracle, Nvidia and AMD. The deals, reportedly valued at over $1 trillion according to a Financial Times report, are meant to help the AI major secure the required for compute power and cloud capacity to meet rising demand and underpin its hardware ambitions.
“We are going to spend a lot on infrastructure, we are going to make a bet, the company scale bet, that this is the right time to do it,” Altman said.
Whether the investments will reap the intended dividends remains to be seen, the OpenAI CEO added.
Behind OpenAI’s feeding frenzy
OpenAI is expected to pay for the massive deals it has signed in the race to artificial general intelligence (AGI), Altman said. It will also help its partners secure debt as a guarantor.
“We are working on plans to be able to help with the financing these companies need at this kind of scale ahead of revenue. We have some interesting ideas there, so we’ll try to sort that out,” Altman said.
Industry watchers have raised concerns over rapid investments in building AI infrastructure, even as the capacity to turn a profit remains unproven.
OpenAI — the most valuable unlisted company in the world with a $500-billion valuation — is yet to turn a profit while it plans to invest trillions in AI infrastructure. It is relying on a mix of venture capital, debt, and creative partnerships with businesses to fuel its ambitions.
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The OpenAI chief’s remarks came in response to a question by technology analyst Ben Thompson about whether association with his company is the only way to become a part of the rapid AI buildout.
AI startups used to approach tech majors like Microsoft, Google, and Amazon for funding. They are now tapping the debt market for the immense capital needed to build the expansive infrastructure required to meet AI demand. Meanwhile, Big Tech firms are pumping up their AI muscles with an eye on the lucrative market.
Altman’s OpenAI and leading AI chipmaker Nvidia have been at the centre of several multi-billion-dollar deals in the buzzing space, sparking circular financing concerns and subsequent bubble fears.
Also Read: Doomsday or new dawn: what will Nvidia, OpenAI’s circular dealmaking bring
OpenAI would vie for as much AI market share as it can get, Altman said. “We’re certainly going to try to build a very heavily used product that adds a lot of value to a lot of people, and we’ve got ambitious plans there… my favourite historical analogy (for AI) is the transistor… I think it will just kind of seep everywhere into every consumer and enterprise product.”
Within a month, OpenAI has signed significant deals with Oracle, Nvidia and AMD. The deals, reportedly valued at over $1 trillion according to a Financial Times report, are meant to help the AI major secure the required for compute power and cloud capacity to meet rising demand and underpin its hardware ambitions.
“We are going to spend a lot on infrastructure, we are going to make a bet, the company scale bet, that this is the right time to do it,” Altman said.
Whether the investments will reap the intended dividends remains to be seen, the OpenAI CEO added.
Behind OpenAI’s feeding frenzy
OpenAI is expected to pay for the massive deals it has signed in the race to artificial general intelligence (AGI), Altman said. It will also help its partners secure debt as a guarantor.
“We are working on plans to be able to help with the financing these companies need at this kind of scale ahead of revenue. We have some interesting ideas there, so we’ll try to sort that out,” Altman said.
Industry watchers have raised concerns over rapid investments in building AI infrastructure, even as the capacity to turn a profit remains unproven.
OpenAI — the most valuable unlisted company in the world with a $500-billion valuation — is yet to turn a profit while it plans to invest trillions in AI infrastructure. It is relying on a mix of venture capital, debt, and creative partnerships with businesses to fuel its ambitions.
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