- OpenAI loses key executives amid AI competition.
- OpenAI faces scrutiny over responsible AI development.
- Brain drain to rivals could hinder OpenAI’s advantage despite being first to market.
Jumping ship in the AI arms race
OpenAI, the company behind ChatGPT, is losing key executives during a pivotal time in the artificial intelligence market.
Cofounder John Schulman recently announced his departure to join rival Anthropic, following two other high-level executives and several former employees in what appears to be an exodus from the company helmed by Sam Altman.
Despite being the first to release a chatbot in a surprise move in November 2022, OpenAI may struggle to maintain its lead as other, bigger companies build and release their own AI.
As tech analyst Jacob Bourne at Emarketer notes, “OpenAI has no ‘moat'” – a significant advantage that keeps a company untouchable from its rivals.
Under the microscope
OpenAI and Sam Altman are facing increased scrutiny, including whistleblower complaints to the SEC, an open letter from current and former employees pointing out the risks of generative AI, and concerns about the company’s management being split between pressing ahead AI development and adopting a more cautious approach.
As a young company an “unusual government structure,” OpenAI will continue to be under a magnifying glass, possibly even more than well-established rivals.
