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Three days ago, we wrote about Open AI’s monopolistic dreams with their apps-within-ChatGPT model. Now, the world’s most valued and influential startup has griped to Europe’s antitrust chief Teresa Ribera that big tech firms were throttling their ability to grow faster.
A Bloomberg report said OpenAI raised red flags about what they described as potentially anti-competitive practices by companies such as Google, Microsoft and Apple. The company said it was finding it tough to compete with these firms and sought the antitrust regulator’s help to stop the “lock-in of customers by these large platforms.
This is truly rich, given that ChatGPT is today the leading the AI chatbot market. Wonder why OpenAI is so concerned about a few slow-moving rivals, who missed the early bus and playing catch up now. What’s more, Sam Altman himself gave a thumbs-up to Google in an interview just two days ago. He told Stratecherry that Google has done incredible work after missing out in when ChatGPT arrived.
Per Bloomberg’s report, the OpenAI officials met Teresa Ribera on September 24 to voice their concerns. They warned specifically about challenges in several digital sectors such as cloud computing and application development. The gripe was that key datasets essential for fair competition in the market was being withheld by the big tech giants.
An upstart that is challenging the Big Brother
While there was no official confirmation from the European Commission about the meeting or what transpired therein, all that the spokesperson of OpenAI would say is direct the wire agency to a past blog post outlining the company’s concerns over data bottlenecks. We wonder how Microsoft would feel at being dragged into this mess, given that they have a multi-billion dollar deal with OpenAI.
However, in the recent past Microsoft has chartered its own course in the AI race by launching its own AI models that compete with GPT-5 while making some feeble attempts to show that all is hunky dory with their erstwhile partner OpenAI. The peace pipe they smoked surprised many and became meme-worthy as both companies had a single paragraph published on their respective websites that said nothing.
The fact of the matter is that Microsoft and Google are chasing pretty much the same list of customers that OpenAI is after. If Microsoft’s Copilot app is a direct rival to ChatGPT, Google’s Gemini Enterprise, which launched yesterday, is operating in the same space as well. All of this makes it clear that the Big Tech is battling a bigger enemy called OpenAI, which had to fire a warning shot across their bows.
OpenAI is building an ecosystem
While the battle with Microsoft could be around software, OpenAI has assiduously built a hardware infrastructure that could challenge the might of Google in the none-too-distant future. In recent times, the company did a $100 billion investment plan with Nvidia and a separate $300 billion deal with Oracle for AI microchips and computing power respectively.
Amidst this camaraderie, Oracle also went ahead and spent billions on Nvidia GPUs to power up the data centres it planned for OpenAI in what appears to be a spinning cash cycle. What needs careful consideration is how long this cycle will spin? According to The Information, Oracle’s profits aren’t really what they had touted as the company is making only $0.14 on a $1 dollar sale.
For now, we see the latest move by OpenAI as nothing more than a signal to the Big Tech that they are out to chase them down. Of course, we would love to hear what Google, Amazon and others respond to the latest gripe around the data hegemony charges.
About the author: Raj is a movie buff, a sports enthusiast and a gadget user. But hardly a tech writer. His focus is on de-jargonizing technology for the simple and uncluttered minds. He studies the business of technology and seeks to cut the clutter. He can be reached at [email protected]).
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