Summary
- OpenAI is set to release its first open-weight language model, allowing developers to run it on their own hardware, according to CEO Sam Altman.
- OpenAI has traditionally made money through its cloud-based subscription model.
- The release came as OpenAI secured 40bninnewfundingata300bn valuation – the largest in the company’s history.
- The company has faced increasing economic pressure as open-source alternatives have proved efficient but much cheaper.
- OpenAI has spent $7-8bn annually on operations, according to AI scholar Kai-Fu Lee.
- The billion-dollar gamble could secure the company’s future relevance but could also accelerate its financial challenges.
- OpenAI’s pivot highlights the commoditisation of foundation models and the focus shifting toward specialised applications.
By Michael Nuñez
Original Article