OpenAI diversifies its portfolio beyond AI and ChatGPT — hires former Meta AR lead and collaborates with Apple’s seasoned Chief Design Officer to bolster its hardware and robotics ventures

OpenAI diversifies its portfolio beyond AI and ChatGPT — hires former Meta AR lead and collaborates with Apple's seasoned Chief Design Officer to bolster its hardware and robotics ventures

What you need to know

  • OpenAI recently hired Caitlin Kalinowski, Meta’s former AR glasses lead, to support its hardware and robotics ventures.
  • In September, former Apple Chief Design Officer Jony Ive disclosed that he was working closely with OpenAI to develop a flagship device that would compete with key players in the mobile landscape.
  • This news comes after a mass exit of high-profile executives from the firm, citing a prioritization for shiny products over safety.

As a seasoned analyst with over two decades of experience in the tech industry, I have witnessed the rise and fall of numerous tech giants, and it seems that OpenAI is at a critical juncture. The recent hiring of Caitlin Kalinowski, Meta’s former AR glasses lead, signals a strategic move by OpenAI to branch out beyond AI models and into hardware development.


Following what appeared to be a large-scale departure of key executives from OpenAI, the company behind ChatGPT, seems to have moved past that challenge. This week, it was announced that Caitlin Kalinowski, previously leading Meta’s AR glasses project, has decided to join OpenAI to contribute to their robotics and consumer hardware division.

While announcing her new position at OpenAI on X (formerly Twitter), Kalinowski indicated:

Starting with my latest position, I’ll primarily concentrate on OpenAI’s robotics projects and collaborations. The aim is to integrate AI into our tangible environment, thereby unveiling its potential advantages for mankind.

At OpenAI, Kalinowski contributes an abundance of practical knowledge and proficiency in creating hardware, having been the driving force behind the development of Meta’s advanced Orion augmented reality headsets in her prior position. These AR headsets were first revealed at Meta’s annual developer conference, Meta Connect. Although the exact launch date for this hardware is yet to be confirmed, it’s said that Meta invested as much as $10,000 in the development of a single pair.

OpenAI branching out beyond ChatGPT and AI models?

OpenAI diversifies its portfolio beyond AI and ChatGPT — hires former Meta AR lead and collaborates with Apple's seasoned Chief Design Officer to bolster its hardware and robotics ventures

OpenAI has seen a surge in popularity following the release of ChatGPT in November 2022, while competitors like Microsoft have faced challenges boosting interest in their AI service, Copilot. Some experts suggest that the lackluster performance of Copilot might be due to Microsoft’s subpar marketing strategies.

It appears that, intriguingly, a leaked report shows that Microsoft’s AI division has been receiving complaints from Copilot users about its performance compared to ChatGPT. However, Microsoft clarified that ChatGPT isn’t superior to Copilot; rather, users may not be utilizing it effectively. The tech company attributed the issue to inadequate prompt engineering practices but later established Copilot Academy to educate users and enhance their skills.

Due to its performance, ChatGPT remains superior to Copilot on mobile devices, as shown by an increase in downloads and earnings following OpenAI’s release of the advanced GPT-4 model. Unfortunately, Microsoft’s recent update for Copilot hasn’t improved the situation. Instead, many users are unhappy with the changes, complaining about a reduced user experience. Even some Microsoft employees acknowledge that this update represents a setback, significantly worsening the user experience for Copilot.

Market experts predict that investor enthusiasm for AI might wane, given the apparent bursting of the bubble and rising concerns about profitability. This trend could potentially leave innovative companies such as OpenAI financially stranded, with inadequate funds to support their cutting-edge developments.

Lately, the company behind ChatGPT was on the verge of bankruptcy, anticipating losses up to $5 billion within a short span. But then, investors such as Microsoft and NVIDIA jumped in during their latest funding round, securing an impressive $6.6 billion, which significantly boosted their market value to approximately $157 billion.

In two years, OpenAI may need to transition into a revenue-generating company or return the funds collected during its recent funding round to investors due to financial pressures. Some industry professionals and market analysts foresee Microsoft potentially acquiring OpenAI within the next three years as they continue to spend substantial amounts of money pursuing AI trends.

Shifting to a commercial enterprise might shield OpenAI from external manipulation and unwanted acquisitions. Yet, this change may face opposition from employees, government bodies, regulatory agencies, and even the board itself. Meanwhile, OpenAI, known for creating ChatGPT, is engaged in legal proceedings due to a lawsuit initiated by its former co-founder Elon Musk, who claims it represents a significant deviation from the original mission, questionable humanitarian intentions, and possible links with criminal activities.

Although there are challenges, OpenAI is methodically building its hardware infrastructure. Recently, it was revealed that Jony Ive, a former chief design officer at Apple, has been collaborating with OpenAI to create a pioneering device. This device might challenge industry giants like Apple and Samsung in the mobile technology market.

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2024-11-05 22:39