OpenAI - The Creator of Revolutionary ChatGPT

Sarika Anand Sarika Anand
Dec 9, 2022 12 min read
OpenAI - The Creator of Revolutionary ChatGPT

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the OpenAI.

Today, artificial intelligence is being incorporated into practically every device and application, from self-driving automobiles to vital life-saving medical equipment. The approaching digital era will undoubtedly include key breakthrough elements, including artificial intelligence(AI).

Amazon, Apple, Google, Facebook, International Business Machines Corporation, and Microsoft are just a few of the IT behemoths making significant investments in AI advancement and research. These businesses are attempting to increase the usability of AI for business applications. Additionally, many businesses use artificial intelligence to enhance client service.

A startup called OpenAI offers services for AI development and implementation. It creates artificial general intelligence (AGI), which enables autonomous systems to perform better at important tasks than humans.

OpenAI - Company Highlights

Company Name OpenAI
Headquarters San Francisco, CA
Industry Artificial Intelligence
Founders Elon Musk, Sam Altman, Ilya Sutskever, Greg Brockman, Wojciech Zaremba, John Schulman
Founded On December 11, 2015
Website www.openai.com

OpenAI- About
OpenAI - Industry
OpenAI - Founders and Team
OpenAI - Startup Story
OpenAI - Name, Logo, and Tagline
OpenAI - Mission, and Vision
OpenAI - Products and Services
OpenAI - Business Model
OpenAI - Recvenue Model
OpenAI - Funding and Investors
OpenAI - Competitors
OpenAI - Future Plans

OpenAI- About

OpenAI was started a non-profit (now, for-profit) artificial general intelligence research company. To make sure that artificial intelligence benefits all of humankind, OpenAI is a provider of an artificial intelligence-based development and research framework.

Clients may quickly acquire skills and develop expertise in AI technologies thanks to the company's platform, which directly contributes to the development of secure and effective general AI and offers an open-source environment that is easily accessible to people.

Artificial intelligence (AI) models for general-purpose activities including writing, reading, programming, and image processing are developed, maintained, and trained by OpenAI. The firm was founded with the intention of studying all-purpose AI technology that may be used for routine jobs. It seeks to provide new, transparent, and safe solutions to enhance human existence.

OpenAI has created AI that has been programmed to compete with itself in a game of hide and seek. Apart from the fact that the hiders are expected to stay out of the line of sight of the seekers and the seekers are meant to keep the hiders in their vision, the AI was given training without any explicit planned objectives.

As the seekers began to discover new tactics to complete their objectives, the hiders finally mastered the ability to locate items and employ them to obstruct the seekers. Autocurriculum produced emergence in strategies. According to the business, these multi-agent dynamics may produce sophisticated behavior that is comparable to human behavior.

Additionally, OpenAI has an algorithm that converts spoken words into code. It is capable of executing complicated instructions involving layered activities and is adept in a number of computer languages. You may construct any sort of software application with Codex, developed by OpenAI.

The organization is concentrating on long-term research, tackling issues that call for fundamental improvements in AI capabilities. OpenAI seeks to affect the circumstances around the development of artificial general intelligence by leading the industry.

The foundation of OpenAI was the conviction that the first AGIs would have an influence that would be much beyond that of earlier AI technologies.

OpenAI - Industry

The global artificial intelligence market is estimated to have a growth of CAGR 36.2% in order to reach 407.0 Billion USD by 2027. The major growth drivers during the forecast period fall under the category of data-based AI, advancement in deep learning, and the need to achieve robotic autonomy in order to stay competitive in the global market.

The primary restraint to the market growth is the limited number of AI technology experts available. Other challenges include the topics like data privacy and the unreliability of AI algorithms. With the adoption of AI, the customer services can be improved to much extent. Its benefit can also be seen in the operational efficiency in the manufacturing industry. Β 

The rise in demand for an intelligent system to enhance efficiency and productivity is propelling the growth of the global artificial intelligence market. Technological advancements in the AI industry such as faster speech and natural language processing are positively impacting the growth of the AI market.

The above graph shows an estimated amount global artificial intelligence market from 2021-2030 in billion US dollars
The above graph shows an estimated amount global artificial intelligence market from 2021-2030 in billion US dollars

OpenAI - Founders and Team

In 2015, OpenAI was established by the efforts of Β Elon Musk, Ilya Sutskever, Greg Brockman, Sam Altman, and Wojciech Zaremba in San Francisco, California.

Elon Musk

Elon Musk
Elon Musk

Serial entrepreneur Elon Musk is renowned for being the founder of high-tech businesses that are inspired by science fiction. He founded PayPal, invested in Tesla, Inc. in its early stages, and served as its CEO. He also served as SpaceX's founder, CEO, and chief engineer. He is also the CEO of Twitter.

After establishing four billion-dollar businesses (PayPal, SpaceX, Tesla, and Solar City), Elon Musk is frequently regarded as one of the world's most successful entrepreneurs.

However, many believe that at his heart, Musk was always an engineer, innovator, and developer before becoming an entrepreneur. He has received praise for his ability to identify design inadequacies, defects, and missteps in some of the technologies on which society depends.

Musk co-founded and co-chaired the charity OpenAI in 2015, with the organization's declared goal being the advancement of artificial intelligence for the betterment of humanity.

The research firm has made it a priority to keep artificial intelligence open and accessible and to make sure it doesn't wind up in the hands of a privileged few businesses. In 2018, Musk resigned from the OpenAI board to prevent any conflicts with his position as Tesla's CEO. Tesla has now entered the AI space with its Autopilot product.

Ilya Sutskever

Ilya Sutskever
Ilya Sutskever

Ilya Sutskever, who was born on January 1st, 1986, is a computer scientist working in machine learning and currently serving as co-founder and Chief Scientist of OpenAI. In the area of deep learning, he has made a number of important advances.

Greg Brockman

Greg Brockman
Greg Brockman

OpenAI's Co-Founder and Chairman, Greg Brockman, previously served as CTO of Stripe, a well-known Silicon Valley firm.

Sam Altman

Sam Altman
Sam Altman

Sam Altman is an American businessman, angel investor, founder and former CEO of Loopt, co-founder, and CEO of OpenAI, and co-founder of Hydrazine Capital. Previously, Sam Altman was also the president of Y Combinator.

Wojciech Zaremba

Wojciech Zaremba
Wojciech Zaremba

Wojciech Zaremba is a Polish mathematician and computer scientist who co-founded OpenAI in 2016 and now oversees the Codex research and language teams. The teams are currently developing GPT-3 successors and building AI that creates computer code, respectively.

OpenAI - Startup Story

Elon Musk, Sam Altman, and other investors announced the creation of OpenAI in December 2015 and committed over US$1 billion to the project. The company declared that by publishing its patents and research, it would "freely interact" with other organizations and researchers.

The public beta of "OpenAI Gym," a platform for reinforcing research areas from OpenAI, was made available on April 27, 2016. On December 5, 2016, OpenAI announced "Universe," which is a platform for developing and testing an artificial intelligence general intelligence throughout the world's supply of websites, games, and other applications.

OpenAI changed its status from non-profit to "capped" for-profit in 2019, with a 100X profit limitation across all investments. In addition to partnering with Microsoft Corporation, which announced a US$1 billion investment package in the firm, the company awarded shares to its employees.

Then, OpenAI stated that Microsoft will be its preferred partner in a commercial licensing agreement for its technologies. OpenAI is a research organization, that has 60 engineers and researchers, committed to advancing and enhancing the organization’s goals and objectives.

They concentrate on thorough study, tackling issues that call for fundamental improvements in AI technologies. OpenAI seeks to affect the circumstances around the development of AGI by leading the field.

The greatest method to forecast the future, according to Alan Kay, is to create it. The group intends to gradually spend the $1 billion in supported commitments since it is concerned with how AGI is developed.

OpenAI - Name, Logo, and Tagline

OpenAI logo
OpenAI logo

As stated above that OpenAI directly contributes to the development of secure and effective general AI and offers an "open-source" environment that is easily accessible to people, showing how its name is derived.

OpenAI - Mission, and Vision

OpenAI mission
OpenAI mission

OpenAI's mission statement says, "The company aims to ensure that artificial general intelligence benefits all of humanity."

The goal of OpenAI is to create a safe and secure AGI and make sure that its advantages are shared as broadly and equally as feasible. With the conviction that the first AGIs would have an influence far greater than that of earlier AI breakthroughs, OpenAI was formed.

OpenAI - Products and Services

The business is renowned for being open to working with other institutions and academics and for keeping its patents and discoveries available to the public.

Muse Net - Muse Net is a deep neural network that can create four-minute musical compositions with up to ten different instruments and any genre.

The program was not created with any knowledge of music in mind, instead, it was learned by repeatedly guessing the following note in a MIDI file. The company used data from ClassicalArchives and BitMidi to train the models.

GPT-3 - Launched on May 29, 2020, by OpenAI, GPT-3 is an auto-regressive language model with 175 billion attributes. The model expands upon the 1.5 billion parameter GPT-2 transformer-based language model that was previously created by OpenAI.

By embracing and scaling GPT-2 features including modified initialization, pre-normalization, and reversible tokenization, GPT-3 outperforms GPT-2. By outperforming the GPT-2 model in task-agnostic and few-shot performance, GPT-3 training can enhance upgrading language models.

ChatGPT

OpenAI ChatGPT
OpenAI ChatGPT

OpenAI unveiled ChatGPT, an artificial intelligence-based chatbot that can construct contracts between producers and artists and write intricate code.

ChatGPT has gained a lot of attention from the public for its human-like, thorough responses to inquiries, and it has the potential to completely change how people use search engines by doing more than just providing links for users to sort through.

Most significantly, ChatGPT has demonstrated the ability to produce complex Python code and compose college-level essays in response to a prompt, raising fears that such technology may eventually replace human employees like journalists or programmers.

The software has significant drawbacks, such as a knowledge base that expires in 2021, a propensity for inaccurate replies, a tendency to repeat words, and the fact that it says it cannot answer a question when given one version but can do so when given a slightly modified version.

Many prominent members of the IT community have expressed surprise at ChatGPT, including Box CEO Aaron Levie, who stated that the program offers a view into the technological future and how "everything is going to be different moving ahead."

Less than a week after its debut, the program, according to CEO Sam Altman, surpassed the one million user threshold on Monday.

This business is obviously succeeding since it is not only expanding quickly but also making significant advancements in the study and use of artificial intelligence. They might quickly establish themselves as one of the leading brands in AI development and application if they maintain this trajectory and expand their user base.

OpenAI - Business Model

OpenAI operates on a freemium basis. Users are first given free tokens on their accounts, which have a three-month expiration date and may be used to access the OpenAI API. However, in order to continue utilizing the API once users exhaust those tokens or go beyond the free review time, a premium subscription must be obtained.

OpenAI encourages participation by first granting users quick access to the majority of the API functionality. Developers are urged to use its API for their projects, and its dashboard gives them access to essential management tools.

Due to the inadequacy of its first non-profit strategy for expansion, OpenAI became a limited-profit corporation named OpenAI LP. However, current OpenAI users and open-source contributors began to have second thoughts about this shift toward a commercialized framework.

Because OpenAI requires such high levels of processing, the firm frequently uses infrastructure from third parties. The company's current income sources could not be sufficient to build a cloud computing network of the size necessary to meet its long-term objectives. Therefore, OpenAI currently depends on venture capital financing.


What is a Business Model? | Types of Business Models | StartupTalky
Ever wonder how businesses work? What goes on behind-the-scenes? How Google makes money? Every business follows a certain style of business model. Read on.

OpenAI - Recvenue Model

OpenAI Website
OpenAI Website

There are two distinct revenue sources for OpenAI. These are the token and API costs.

API Fees

Users who register on the OpenAI website and create an account receive free tokens worth $18 that are good for up to three months. The tokens must be replaced whenever they run out or expire. OpenAI currently uses a pay-as-you-go, model.

Access to OpenAI's models is subject to a range of fees. Ada has a $0.0004 training cost and a $0.0016 use cost. These rates are determined using a base unit of 1,000 tokens, or around 750 words.

A quota is given to each user. Once a user writes an application and submits it for evaluation, usage quotas are modified. Users can also ask for a higher quota.

Token Fees

Users require tokens in order to utilize OpenAI's DALL.E text-to-image converter. In the first month, users receive 50 credits, and in each subsequent month, they receive an additional 15 credits for free. Four photos can be produced from one question using one credit.

Additional credits are expensive. For $15, OpenAI offers 115 credits that may be used to create 460 pictures. Professionals and enthusiasts use more tokens since they frequently alter the system's default outcomes by reentering them.

OpenAI - Funding and Investors

OpenAI has raised $1B in funds in a total of 4 rounds which are as listed below.

Date Round Amount Lead Investors
Jan 1, 2021 Venture Round - -
Jul 23, 2019 Corporate Round $1B Microsoft
Mar 11, 2019 Venture Round - Khosla Ventures, Reid Hoffman Foundation
Aug 22, 2016 Pre-Seed Round $120K -

OpenAI has made overall 2 investments with the most recent one being calculated on November 7, 2022. When EdgeDB raised $15 Million amount in the Series A round. The list of investments made by OpenAI is shared below.

Date Organization Name Round Amount
Nov 7, 2022 EdgeDB Series A $15M
Oct 27, 2022 Descript Series C $50M

OpenAI - Competitors

OpenAI's competitors include DeepMind, huggingface.co, wandb.ai, deepai.org, deepdreamgenerator.com, doc.ai, Neo Cybernetica, and Sobolt.

OpenAI - Future Plans

OpenAI has already revolutionized the industry with its AI power to much extent. As for the future plans of the firm, it is looking forward to increasing its collaboration with other research organizations and companies in order to extend AI-powered services.

OpenAI is also looking forward to trying its hand at the robotics and natural language processing fields with its services. As of the current scenario, OpenAI has already partnered with major tech firms like Google, Facebook, and Microsoft in order to provide its services for their use. Continuing them for a longer period of time can also be taken as a future plan of OpenAI.

Conclusion

Artificial Intelligence is a common word in the tech field. Relying on the same words, a research startup named OpenAI was developed in 2015 with the goal of providing a friendly environment to build safe AI, and to ensure the safe and even distribution of the AI's benefits around.

The article discusses about the business model, founders, startup story, and other essential details like funding and investment in an easy pattern.

FAQs

Is OpenAI free to use?

OpenAI works on the freemium business model. That means it is free to use with a limited time period or coupons. After the expiration of the free model, a premium plan has to be purchased from them for further use.

When did Elon Musk leave OpenAI?

On February 2018, Elon Musk left the board of OpenAI but still remained on the list of donors.

What programming language does OpenAI use?

The programming language used by OpenAI is Codex which is compatible with a number of programming languages like JavaScript, PHP, TypeScript, etc.

How long is OpenAI free trial?

In the start, OpenAI provides tokens to its users worth $18 as a free credit that expires in the next three months.

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