Along with buzz about Gemini on social media, Google is quickly catching as much as ChatGPT in user numbers. ChatGPT has greater than 800 million weekly users, in response to OpenAI, while Google’s Gemini app has grown from 450 million monthly lively users in July to 650 million in October, in response to Business Insider.
Financial stakes run high
Not everyone views OpenAI’s “code red” as a real alarm. Reuters columnist Robert Cyran wrote on Tuesday that OpenAI’s announcement added “to the impression that OpenAI is attempting to do an excessive amount of directly with technology that also requires an awesome deal of development and funding.” On the identical day Altman’s memo circulated, OpenAI announced an ownership stake in a Thrive Capital enterprise and a collaboration with Accenture. “The one thing larger than the corporate’s attention deficit is its appetite for capital,” Cyran wrote.
In truth, OpenAI faces an unusual competitive drawback: Unlike Google, which subsidizes its AI ventures through search promoting revenue, OpenAI doesn’t turn a profit and relies on fundraising to survive. In keeping with The Information, the corporate, now valued at around $500 billion, has committed greater than $1 trillion in financial obligations to cloud computing providers and chipmakers that offer the computing power needed to coach and run its AI models.
However the tech industry never stands still, and things can change quickly. Altman’s memo also reportedly stated that OpenAI plans to release a brand new simulated reasoning model next week that will beat Gemini 3 in internal evaluations. In AI, the back-and-forth cycle of one-upmanship is predicted to proceed so long as the dollars keep flowing.
