Former OpenAI co-founder raises $1 billion for safety-focused firm while the ChatGPT maker prioritizes shiny products and is on the cusp of bankruptcy

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What you need to know

  • Former OpenAI co-founder and Chief Scientist Ilya Sutskever recently raised $1 billion through investors for his new AI firm — Safe Superintelligence Inc.
  • Safe Superintelligence Inc (SSI) is focused on building safe superintelligence as OpenAI reportedly prioritizes shiny products over safety processes.
  • OpenAI is reportedly on the verge of bankruptcy within the next 12 months, with projections of $5 billion in losses.
  • The ChatGPT maker might get an extended lifeline through another round of funding sponsored by Microsoft, Apple, and NVIDIA, which could push its market cap to over $100 billion.

As a seasoned researcher who has closely followed the AI landscape for several years, I find myself increasingly concerned about the current state of affairs at OpenAI. My initial enthusiasm for the organization, which was founded by visionaries like Elon Musk and Sam Altman, has turned into a sense of unease as reports of financial instability, safety concerns, and legal battles pile up.

After spending ten years with OpenAI, Ilya Sutskever, one of the co-founders and Chief Scientists, decided to leave the company to concentrate on a project that held personal significance for him. In June, Sutskever unveiled Safe Superintelligence Inc., a newly established business dedicated to developing safe artificial super-intelligence.

It has been reported that several employees from OpenAI have quit, expressing worries about safety and claiming that the company often puts the development of attractive products ahead of safety measures. This situation is said to have led to a hurried launch of GPT-4, as the safety team was allegedly asked to rush through testing before the product’s release, with only a week to complete the process.

It turns out that Sutskever’s Safe Superintelligence company is seeing considerable early success. A report by Reuters indicates that the scientist has successfully secured $1 billion for his new venture from various investors, including Andreessen Horowitz, Sequoia Capital, NFDG, and others.

OpenAI continues to languish in multiple issues

Lately, we shared news that OpenAI was projected to be near financial collapse within the year, anticipating a staggering $5 billion in losses. It’s said they invest around $7 billion in training their AI models and another $1.5 billion on personnel costs, while their annual income is approximately $3.5 billion.

It’s possible that the company behind ChatGPT could receive additional funding from tech giants like Apple, Microsoft, and NVIDIA, potentially propelling its market value past $100 billion. This development comes at a time when AI investors are expressing apprehensions about high costs associated with AI projects, which appear to be producing minimal profits. Some experts suggest that AI is experiencing a phase where 30% of its ongoing projects could be terminated by 2025 following demonstration of their feasibility or lack thereof.

It’s common knowledge that ChatGPT, operated by OpenAI, costs more than seven hundred thousand dollars per day in maintenance, without factoring in the significant financial requirements related to the impressive energy needs and cooling systems required for its operation.

In other places, OpenAI and Microsoft are involved in numerous legal disputes due to alleged copyright violations. Nevertheless, Sam Altman contends that copyright law does not restrict the employment of copyrighted material for training AI models, acknowledging that it’s impractical to develop tools such as ChatGPT without it.

Elon Musk, co-founder of OpenAI, has once more taken legal action against the company behind ChatGPT and its CEO, Sam Altman, alleging a breach of their original purpose and engaging in questionable business practices, which he claims amount to racketeering.

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2024-09-06 11:40