OpenAI, the startup responsible for the widely utilised conversational AI model ChatGPT, has secured new backers, according to TechCrunch. VC firms such as Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global have picked up new shares totalling just over $300 million at a valuation of $27 billion – $29 billion.
This investment comes in addition to Microsoft’s earlier investment of around $10 billion.
Investment Milestone and Future Prospects
As reported by TechCrunch, the investment phase, which first gained attention from the Wall Street Journal in January, is nearing completion.
While Microsoft’s investment focuses on strategic collaboration, the VC firms are joining the fray as financial supporters. The intention is to publicly announce these investments in the coming week.
Controversies and Successes
OpenAI’s ChatGPT has seen both controversy and success.
Concerns have been raised over the AI’s truthfulness, privacy handling, and potential for manipulation. Despite these challenges, OpenAI has continued to develop its services.
In February, the startup introduced a paid version of ChatGPT called ChatGPT Plus, which offers a faster user experience.
“OpenAI may be the closest thing we have to a winner in the space right now,” an anonymous source mentioned. OpenAI CEO Sam Altman echoed this sentiment at an AI conference, saying that the company’s success comes from its relentless attention to detail.
OpenAI’s Impact on the AI Ecosystem
OpenAI’s technology has been widely adopted by businesses, large and small. It has spurred other tech giants to speed up their own efforts in generative AI.
Google launched Bard, and Meta introduced LLaMA to compete with GPT’s proprietary LLM.
Addressing Privacy Concerns in Italy
Recently, the ChatGPT chatbot was reactivated in Italy after OpenAI addressed concerns raised by the country’s data protection authority.
OpenAI now offers a tool to verify users’ ages in Italy upon sign-up, provides greater visibility of its privacy policy, and supplies a new form for European Union users to object to its use of personal data for training its models.
The European Data Protection Board has set up a task force on ChatGPT, which will continue to work with Italy’s data protection authority during its ongoing probe of the AI service.
