[peterhunt]

I worked with these guys a long time ago at FB.

Their founder and CEO created The Algorithm at Instagram. Rest of the team is super strong too. Makes a lot of sense for OpenAI to acquire a team at the intersection of AI and consumer products.

[londons_explore]

I think they have to decide if they want to be an API provider or a product-maker.

Businesses don't tend to do well when they directly compete with their clients.

At the very least spin one off into a subsidiary whose affiliation isn't widely known.

[vineyardmike]

Seems pretty obvious they decided to be a product maker. This is them doubling down.

They started out obviously doing API stuff. chatGPT was some sort of proof-of-concept or whatever but once it went viral, the obvious pivot is to be a product maker. The margins on ChatGPT+ is way better than an API, as every ChatGPT clone will tell you. A viral product is really hard to make, never mind make and throw away to focus on lower margin corporate customers.

They seem to have a great vision now - make a good product (WIP, but rapidly iterating), and sell the underlying models to Microsoft to offer as an API for the residual value they can’t capture directly. This should make it clear that if you’re selling a Chatbot off of their APIs, they’re planning to compete with you.

[_pdp_]

100% Yep. I like OpenAI but I think their peril will be due to lack of vision more than anything else. Other players are catching up. IMHO they should stick to providing AI infrastructure.

That being said, considering Microsoft's investment, the most likely outcome is that OpenAI will move into the consumer business while being the research arm for Azure.

[falcor84]

>Businesses don't tend to do well when they directly compete with their clients.

True in general, but then we have Amazon.

[kridsdale3]

> I think they have to decide if they want to be an API provider or a product-maker. > Businesses don't tend to do well when they directly compete with their clients.

Isn't this what MSFT and GOOG do?

[Solvency]

IG's algorithm is one of the worst on the planet. Though not as bad as Spotify's. Not really a selling point.