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| == Corporate strategy == | | == Corporate strategy == |
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| # '''Broadly distributed benefits:''' OpenAI commits to use any influence it obtains over AGI to ensure it is used for the benefit of everyone. It also seeks to avoid enabling uses of AI or AGI that harm humanity or concentrate power unduly.
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| # '''Long-term safety:''' OpenAI is dedicated to researching and promoting the safe use of AGI. They have expressed concerns about AGI development becoming a competitive race without adequate safety precautions. If a safety-conscious project gets close to building AGI before OpenAI, they commit to stop competing and start assisting that project.
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| # '''Technical leadership:''' OpenAI believes that in order to effectively address AGI's societal impact, it must be at the forefront of AI capabilities. Policy and safety advocacy alone would not be sufficient.
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| # '''Cooperative orientation:''' OpenAI actively cooperates with other research and policy institutions and aims to create a global community working together to tackle AGI's global challenges.
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| == Competitor analysis == | | == Competitor analysis == |
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| * The main target of Cohere are enterprise users therefore they focus on high-performance, secure and reliable language models. They have currently raised $170 million and once it reaches $6 billion valuation additional funding would be obtained. It is estimated that Cohere made $2.3 million in 2021<ref>https://aisupremacy.substack.com/p/the-top-six-rivals-competing-with</ref>. | | * The main target of Cohere are enterprise users therefore they focus on high-performance, secure and reliable language models. They have currently raised $170 million and once it reaches $6 billion valuation additional funding would be obtained. It is estimated that Cohere made $2.3 million in 2021<ref>https://aisupremacy.substack.com/p/the-top-six-rivals-competing-with</ref>. |
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| == Financials and Statistics <ref>[https://investingintheweb.com/education/openai-statistics/#:~:text=The%20openai.com%20website%20has,around%201.7%20billion%20monthly%20visits. https://investingintheweb.com/education/openai-statistics/#:~:text=The%20openai.com%20website%20has,around%201.7%20billion%20monthly%20visits.]</ref> == | | == Historical and forward financials == |
| Chat GPT is the fastest platform to reach 1 million users compared to some of the other popular social media and streaming platforms such as Instagram, Facebook and Netflix. Chat GPT reached 1 million users in 5 days while Instagram took 15 times longer (75 days) and Netflix took 3.5 years.
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| Chat GPT also reached 100 million users in only two months further reinforcing the rapid growth of its customer base.
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| [[File:Fs11.png|none|thumb|997x997px]]
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| OpenAI witnessed around $10 million revenue in 2022. It is expected that OpenAI will generate $200 million revenue by 2023 and $1 billion by 2024.
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| Around 1.7 billion visits are recorded per month and number of visits per day is north of 56 million. The number of monthly visits has rapidly increased over the last few months even though in June 2023 the monthly visits reduced by 200 million compared to May 2023.
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| [[File:Fs22.png|none|thumb|1093x1093px]]
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| The launch of Chat GPT towards the end of 2022 and new version in March 2023 escalated the popularity of Open AI. This resulted in peak popularity as shown in the graph below.
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| [[File:Fs3.png|none|thumb|1002x1002px]]
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| Majority of the Open AI visitors are the younger generation. The 18-24 years old age segment makes up just under 30% of the total visitors while the 25-34 years segment makes up the largest proportion (around 35%).
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| [[File:Fs4.png|none|thumb|921x921px]]
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| == Risks == | | == Risks == |
| '''1. Dependence on Talent''' <ref name=":0">https://pestleanalysis.com/openai-swot-analysis/</ref>
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| OpenAI has a highly talented workforce which allows it to create advanced platforms and services for its users. Therefore, the company is very dependent on the researchers and engineers in its teams. The competition in the market is fierce so if the employees are offered better salary packages and incentives, they could leave and join the competitor firms. As a result, OpenAI risks loosing vital knowledge and expertise on the released and other services currently under development.
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| '''2. Uncertainty about the real world impact''' <ref name=":0" />
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| Many of the OpenAI services are in the research phase and their exact implication in the real world in not yet completely known. It is unclear as to how these developments will be applied to the practical world to resolve some of the problems and the expectations could be unrealistcally high. It will take more time to understand the exact applications and benefits of these new services and platforms in the real world.
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| '''3. Competition''' <ref name=":0" />
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| OpenAI is facing fierce competitions against other major industry players such as Facebook and Google who have also invested significantly in AI research. Additionally, new players (smaller start-ups) are emerging in the market. OpenAI risks losing its customer base and top employee talent to its competitors.
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| '''4. Regulations''' <ref name=":0" />
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| Across the globe, governments are placing new strict regulations to ensure that advancements in AI technology considers privacy, bias and ethics. New regulations could stunt the development of further ambitious AI technology and limit the wide variety of applications of the current innovations.
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| '''5. Cyber Security Risks''' <ref name=":0" />
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| As some of the services and platforms offered by OpenAI become more popular, it becomes more venerable to cyber attacks. Open AI naturally accesses a large amount of data, some of which can be very sensitive making it an ideal target. Any malicious attacks on its system could land OpenAI in lots of legal consequences.
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| '''6. Supply Chain''' <ref>https://www.konsyse.com/articles/openai-swot-analysis/?utm_content=cmp-true</ref>
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| AI technology is dependent on hardware such as graphic processor. As the demand for the advanced technology rises, any problems with the supply chain could be a significant risk
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| '''7. Public Perception''' <ref>https://biznewske.com/in-depth-swot-analysis-of-openai/</ref>
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| The general public might be hesitant to use technology which incorporates a significant amount of AI. There might be a general resistance from the consumers which needs to be overcome and acquiring consumer's trust and resolving any misconceptions or concerns will take some time.
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| == ESG Factors ==
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| # '''Environmental (E):''' OpenAI's direct environmental impact, in terms of operations, might come from the computational resources required for training large models like mine. Energy consumption, especially from non-renewable sources, is a concern in the AI research community. OpenAI has been part of discussions regarding the environmental impact of training large models and has acknowledged these concerns in the past.
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| # '''Social (S):''' OpenAI's mission is inherently social – to benefit all of humanity. They are committed to ensuring AGI's benefits are broadly distributed and avoiding uses of AI that harm humanity. They actively collaborate with other institutions, aiming for a cooperative global approach to AGI.
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| # '''Governance (G):''' OpenAI's charter outlines its governance approach, emphasizing long-term safety, technical leadership, and cooperative orientation. OpenAI is also committed to transparency, although they note that safety and security concerns may reduce their traditional publishing in the future.
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| == Deal Rationale == | | == Deal Rational == |
| As of the writing of this report no financial data has been made available to the general public. The only indication of OpenAI's value is the investment size made to OpenAI by various Venture Capital firms (including Sequoia Capital, Andreessen Horowitz, Thrive and K2 Global) and large technology conglomerates (including Microsoft). The venture capital firms have invested just over $300 million and Microsoft has invested $10 billion. This gives OpenAI a valuation of $28 billion dollars. The venture capital firm's aims seem transparent enough however, microsoft's investment in OpenAI is much more nuanced (explored more in the next section).<ref>https://techcrunch.com/2023/04/28/openai-funding-valuation-chatgpt/</ref> | | As of the writing of this report no financial data has been made available to the general public. The only indication of OpenAI's value is the investment size made to OpenAI by various Venture Capital firms (including Sequoia Capital, Andreessen Horowitz, Thrive and K2 Global) and large technology conglomerates (including Microsoft). The venture capital firms have invested just over $300 million and Microsoft has invested $10 billion. This gives OpenAI a valuation of $28 billion dollars. The venture capital firm's aims seem transparent enough however, microsoft's investment in OpenAI is much more nuanced (explored more in the next section).<ref>https://techcrunch.com/2023/04/28/openai-funding-valuation-chatgpt/</ref> |
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| '''Microsoft's Investment Rationale''' | | '''Microsoft's Investment Rational''' |
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| * To supercharge its supercomputing division through vertical integration. | | * To supercharge its supercomputing division through vertical integration. |
