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Why OpenAI is forced to enter the search business

May 18, 2024 - nextword.substack.com
The article discusses OpenAI's shift from the pursuit of AGI to the commercialization of AI, which has led to the departure of key executives like Ilya Sutskever. The author argues that OpenAI's decision to enter the search market is a defensive reaction to challenges posed by Google and Meta in both enterprise and consumer markets. The author suggests that OpenAI's future will likely be pervasive, multi-modal, and ad-supported, and that it needs to gain market share in search to justify its valuation and expectations.

The author also discusses the difficulties OpenAI faces in the enterprise and consumer markets, with Google and Meta monopolizing GPT-4 grade LLM and aggressively integrating GenAI features into their products. The author suggests that OpenAI needs to expand its distribution to maintain a long-term advantage in LLM research. The author concludes by warning OpenAI against trying to replicate Google's strategy, suggesting instead that it should focus on capitalizing on Google's mistakes and forming partnerships with companies like Apple or Samsung.

Key takeaways:

  • The shift from the pursuit of AGI to the commercialization of AI has led to key departures from OpenAI, such as Ilya Sutskever, and will shape the future of GenAI to be pervasive, multi-modal, and ad-supported.
  • OpenAI is entering the search market as a defensive reaction to challenges posed by Google and Meta in both enterprise and consumer markets.
  • OpenAI's decision to enter search is not driven by profit but is a defensive reaction to challenges posed by Google and Meta in both enterprise and consumer markets.
  • OpenAI needs to build distribution and relationships with users to compete with Google in search personalization, which is a business problem rather than a technical one, and not where OpenAI's strengths lie.
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