Future Challenges Await OpenAI

2024-01-31

In a recent blog post, artificial intelligence expert Gary Marcus expressed concerns about OpenAI and listed a series of challenges the ChatGPT manufacturer may face this year. Last year, he testified in support of Sam Altman at a hearing in the United States Senate. Marcus, as a long-time scientist and technology expert who has been following the company closely, sees a long list of challenges that OpenAI will face this year. Legal Issues? Marcus acknowledges that OpenAI is a key player when it comes to the future of artificial intelligence. However, this distinction comes with a lot of criticism, as OpenAI is now "under a microscope," as he puts it. When it comes to the lawsuit from The New York Times, he says it is just the first of many lawsuits to come. This lawsuit has been referred to as the one that finally prompted OpenAI to respond, as it provided evidence that ChatGPT was trained on publisher data, which is a typical copyright infringement case. Meanwhile, OpenAI has reached agreements with publishers such as The Associated Press, Axel Springer, the American News Project, and New York University, to pay licensing fees ranging from $1 million to $5 million for their articles. Since news publishers sought solutions with Microsoft and OpenAI in April, the deal with The New York Times seems to have fallen through without any substantial results. On the other hand, The New York Times has partnered with Google for the same reason. Altman now states that OpenAI no longer needs to use NYT data to train its models. Altman says, "Some people want to work with us, and some people don't." The only potential setback for OpenAI is its profits, as it may ultimately have to pay for copyright infringement. The company acknowledges that without copyrighted material, artificial intelligence cannot be adequately trained. This means it will eventually have to pay for licensed material or face fines. However, funding may not be a big issue for OpenAI, as it has already gone through several rounds of financing. According to recent reports, the company is seeking to raise funds with a valuation of $100 billion. With the support of Microsoft, OpenAI may not be too concerned even if it has to compensate for its actions. Profit, Moat, and Technology OpenAI has it all. Although it is not currently profitable, it is predicted that the company will soon achieve profitability. Since the development of ChatGPT, it has sustained long-term losses. However, the company recently reported annual revenue of over $1.6 billion due to ChatGPT. When we say OpenAI is as good as its next model, we mean it. Currently, Google is about to release Gemini Ultra, and Meta is releasing the open-source Llama 3. Indeed, it may be on par with GPT-4, but OpenAI may overshadow both models with just the release of GPT-5. Interestingly, the company may also decide to open-source models like GPT-4 to cater to the open-source community. Concerns about the illusion and experts' claims that generative artificial intelligence may soon reach a plateau are valid for all global products. When it comes to building these models, OpenAI will remain a leader, constantly innovating and offering different solutions in various verticals. Nevertheless, Tensions Will Persist At the 2024 World Economic Forum in Davos, Altman stated that he is still unsure about what Ilya Sutskever is doing at OpenAI, hinting that board members and the entire team may still be brewing trouble. The struggle between being a selfless nonprofit organization and a for-profit entity has become public, and it will be a focus for the company this year. But as Marcus concludes, these tensions are not unique to OpenAI. While it may still be in the spotlight, its situation may be better than other companies. Although its valuation may decrease, there will be no substantial impact on this leading artificial intelligence startup.