In the ever-evolving landscape of AI technology, the recent turmoil at OpenAI serves as a stark reminder of the challenges that come with rapid growth and innovation. As executives and researchers depart amid internal disputes, it raises critical questions about the future of organizations that prioritize profit over purpose. The tension between OpenAI’s original mission and its new profit-driven initiatives highlights a fundamental truth: a company’s values must remain at the forefront of its strategy. For startups and established firms alike, here is my advice to avoid chaos and talent drain: ✅ Embrace change. Boards need to enhance their effectiveness through objective oversight and agile decision-making. ✅ Build a culture of trust. Align your board composition with diverse perspectives and foster multi-stakeholder engagement. ✅ Prioritize talent and culture as competitive advantages. A strong team is your best asset for long-term value creation. ✅ Integrate ESG, Safety and AI into your business strategy. This is not just a trend; it’s a necessity for sustainable growth. ✅ Model agility. Seek product-centric delivery metrics to encourage innovation and responsiveness. ✅ Tap the wisdom of capable board. Their insights on material issues are invaluable for navigating today’s complex business environment. In an era where collaboration is key, let’s not forget that shared purpose triumphs over individual ambition. As we navigate the velocity of change, let’s treat trust and technology ethics as our competitive advantage. What are your thoughts on how organizations or boards can better align their missions with the higher purpose strategies? I invite you to share your insights in the comments below! #CEO #KSgems #BoardOversight #AI #Startup #Leadership #CorporateGovernance #Innovation #Purpose Deepa Seetharaman Emma W. Thorne James Callan Kara Reinhardt Riva Gold Manuj Aggarwal
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A guest essay in the NY Times by Andrew Kassoy: "OpenAI has responded to these concerns by saying it will become a public benefit corporation. A benefit corporation is a traditional for-profit company with one key difference: It is legally obligated to balance profit with purpose. Public benefit corporation leaders and boards must consider workers, customers, communities and the environment, not just shareholders, as in a standard corporation. (...) Yes, becoming a public benefit corporation will give OpenAI’s board the ability to make decisions that consider the long-term interests of society and the planet, in addition to its balance sheet. But that should be table stakes for any A.I. company. Public benefit corporations are required to balance the impact of their business decisions with a broad set of interests. (...) However, the company can’t do that if it is beholden to investors whose main measure of success is their investment return. Furthermore, the future of humanity shouldn’t have to rely on unaccountable executives such as Sam Altman, OpenAI’s chief executive, to know if the company is living up to its stated principles."
Opinion | OpenAI Could Be a Force for Good if It Can Address These Issues First
https://www.nytimes.com
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Bloomberg's Seth Fiegerman reports that SoftBank Group Corp. is eyeing a $500 million investment in OpenAI, as part of a broader $6.5 billion funding round that could value OpenAI at $150 billion. The round, reportedly led by Thrive Capital, positions SoftBank as a central player in the AI race, especially as the company looks to expand into AI chips and infrastructure. With key investors and partners like Microsoft also involved, this development could further solidify OpenAI’s dominance in the global AI landscape. https://lnkd.in/e43wgJyV
SoftBank to Invest $500 Million in OpenAI, Information Reports
bloomberg.com
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Interesting read. One of the biggest things I’ve learned since MAICON, and that I still haven’t fully come to terms with, is how little these companies actually understand about the models they’re creating. A good reminder that while it feels like we’re in a race to learn and implement AI, we should still tread carefully.
Founder & CEO, Marketing AI Institute and SmarterX | Co-Host of The Artificial Intelligence Show Podcast
This WSJ article is packed with intriguing OpenAI insights and drama, but this is the excerpt that really caught my attention: “This spring, tensions flared up internally over the development of a new AI model called GPT-4o that would power ChatGPT and business products. Researchers were asked to do more comprehensive safety testing than initially planned, but given only nine days to do it. Executives wanted to debut 4o ahead of Google’s annual developer conference and take attention from their bigger rival. “The safety staffers worked 20 hour days, and didn’t have time to double check their work. The initial results, based on incomplete data, indicated GPT-4o was safe enough to deploy. But after the model launched, people familiar with the project said a subsequent analysis found the model exceeded OpenAI’s internal standards for persuasion…” This is a microcosm of the AI industry right now. Companies are racing to preview and launch more advanced models and products before their competitors in order to win market share, investment dollars, stock price jumps, and ego boosts. This leads to half-baked hardware (Rabbit, Humane AI Pin, etc), product demos we don’t see in production for months / years (Meta Orion, Apple Intelligence, OpenAI Sora and Advance Voice, Google Project Astra, etc), and models that may be more capable and dangerous than we’re led to believe. And yet, the technology is very real, and the impact it will have on businesses, the economy and society is still largely underestimated. We have intelligence on-demand for the first time in human history. It’s going to be a bumpy ride, with some tough PR hits, especially for the companies and leaders pushing us into the frontier of the intelligence age. https://lnkd.in/gW_HiKfk
Turning OpenAI Into a Real Business Is Tearing It Apart
wsj.com
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Open-source counter-efforts are rapidly closing the gap in AI development. OpenAI has maintained a competitive advantage through a combination of research excellence, access to immense computing power, secrecy, and efficient time-to-market strategies. This approach worked exceptionally well, while it was a first mover. However, what the article describes may just be the natural evolution that a more competitive landscape entails/requires. https://lnkd.in/d2UH37i6 #AI #OpenSource #Innovation #Technology #CompetitiveAdvantage #FutureTrends #ArtificialIntelligence #OpenAI
Behind OpenAI’s Staff Churn: Turf Wars, Burnout, Compensation Demands
theinformation.com
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A 1999 ad by Google: “pure search engine” 🫢 Fast forward to 2024, OpenAI & Perplexity are rebuilding Google. Fascinating how some companies become what they are born to defeat. P.S. for more interesting stuff, check out 🔔linas.substack.com🔔, it's the only newsletter you need for all things when Finance meets Technology. For founders, builders, and leaders.
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A 1999 ad by Google “pure search engine” 🫢 Fast forward to 2024, #OpenAI & #Perplexity are rebuilding #Google. Fascinating how some companies become what they are born to defeat. P.S. for more interesting stuff, check out 🔔linas.substack.com🔔, it's the only newsletter you need for all things when Finance meets Technology. For founders, builders, and leaders.
Reinventing Finance 1% at a Time 💸 | Scaling Digital Asset Infrastructure 🚀 | The only newsletter you need for Finance & Tech at 🔔linas.substack.com🔔 | Financial Technology | FinTech | Artificial Intelligence | AI
A 1999 ad by Google: “pure search engine” 🫢 Fast forward to 2024, OpenAI & Perplexity are rebuilding Google. Fascinating how some companies become what they are born to defeat. P.S. for more interesting stuff, check out 🔔linas.substack.com🔔, it's the only newsletter you need for all things when Finance meets Technology. For founders, builders, and leaders.
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OpenAI just raised $6.6 billion, but... what's up under their hood? 💰 🔎 With a $157 billion valuation and mounting losses of over $5 billion this year, one has to ask if the investors are seeing something we’re not. Microsoft, Nvidia, and some familiar VC names are all in, despite a corporate restructuring that’s shifting them from nonprofit to for-profit – and that's after the abrupt exit of their CTO, right before she had to sign any representations associated with the deal. They’re also bringing back convertible notes conditioned upon that for-profit restructuring - haven’t seen those in a while - and projecting revenue to jump from $3.6 billion to $11.6 billion next year, somehow. Are their LLMs about to outpace the market even more in the coming months? Is there something else the market is not factoring in, that investors are? How is the valuation justified with crucial personnel and balance sheet losses of such magnitude? Some details here are concerning. But hey, when has that stopped anyone from investing billions? https://lnkd.in/gtGiXffp
OpenAI gets $6.6 billion in new funding, valuing company at $157 billion
washingtonpost.com
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A 1999 ad by Google “pure search engine” 🫢 Fast forward to 2024, #OpenAI & #Perplexity are rebuilding #Google. Fascinating how some companies become what they are born to defeat. P.S. for more interesting stuff, check out 🔔linas.substack.com🔔, it's the only newsletter you need for all things when Finance meets Technology. For founders, builders, and leaders.
Reinventing Finance 1% at a Time 💸 | Scaling Digital Asset Infrastructure 🚀 | The only newsletter you need for Finance & Tech at 🔔linas.substack.com🔔 | Financial Technology | FinTech | Artificial Intelligence | AI
A 1999 ad by Google: “pure search engine” 🫢 Fast forward to 2024, OpenAI & Perplexity are rebuilding Google. Fascinating how some companies become what they are born to defeat. P.S. for more interesting stuff, check out 🔔linas.substack.com🔔, it's the only newsletter you need for all things when Finance meets Technology. For founders, builders, and leaders.
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Playing the AI long game In Fortune, Gitlab CEO Sid Sijbrandij shares how leaders can build a sustained #AI strategy by empowering developers. 🖥 Iterate, iterate, iterate “Implementing AI isn’t like flipping a light switch. Developer teams need a trial-and-error period to determine how AI and other tools mesh with individual workflows. There could be a short-term productivity decline before the organization realizes long-term gains—and leadership should prepare for that.” 🚀 Approach AI responsibly “With software development teams’ new power also comes great responsibility: to approach AI with intention. Companies that don’t use AI for software development risk being left behind. But leaders who rush headlong into implementing AI without understanding its impact are ordering up a heaping plate of risks with a small side of rewards.” 📐 Measure what counts “Intention doesn’t just apply to risk; it also applies to impact. With AI, we must redefine success metrics from activity-centered metrics, such as lines of code, to more nuanced measures, such as enhancing problem-solving capabilities and improving time to market.” ✅ #gitlab #cloudpartners #gcp #aws ➡ https://lnkd.in/gquBKnsP
Playing the AI long game
brand-studio.fortune.com
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OpenAI's upcoming investment round includes a term where the company has two years to convert to a for-profit business or the funding will convert into debt. While convertible notes are common, this is essentially the opposite. This could be a very real problem for the company in a couple of years if it is neither a for-profit nor insanely profitable. #ai #technology https://lnkd.in/gpDuhEUJ
The Art of the OpenAI Deal
spyglass.org
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