Beware AI Startups, OpenAI ‘s ChatGPT Can Take You Out Anytime

Key Takeaways:

– OpenAI updated ChatGPT to include PDF services, rendering several AI startups that built themselves around PDF analysis useless.
– These startups, known as “wrapper startups,” provide add-ons to ChatGPT that offer additional features not offered by OpenAI.
– The update has led to frustration and concerns among AI executives and startup founders, with some claiming that many startups have been negatively affected.
– OpenAI’s ability to add new features, backed by funding from Microsoft, puts it in a strong position to continue dominating the space.
– The Biden Administration’s AI Executive Order, which requires generative AI companies to share safety test results and develop new standards, may pose challenges for smaller AI startups but not for larger players like OpenAI.
– OpenAI is hosting its first developer conference, Dev Day, on November 6, where it aims to attract developers to build new products using ChatGPT.

Gizmodo:

Photo: Kevin Dietsch (Getty Images)

OpenAI updated ChatGPT to include PDF services over the weekend, according to user reports. Several AI startups built themselves around PDF analysis to be used as an add-on to ChatGPT, but OpenAI’s latest update may have just rendered these startups useless.

“OpenAI just executed a move that will wipe out dozens of AI companies,” wrote Sahar Mor, product Lead at Stripe in a Linkedin post Sunday. Mor is referring to the “wrapper startups.” Wrappers are essentially add-ons to ChatGPT that allow users to add various features and capabilities, such as PDF analysis, onto ChatGPT’s existing model. They’re typically created by small AI startups that provide functionality not offered by OpenAI.

Other artificial Intelligence executives took to X to vent about the ChatGPT update. “Many startups just died today,” tweeted Alex Ker, the founder of AI incubator, P-ai, on Saturday.

“We’re one of the ‘victims’ hit by this update,” said ChatOCR’s Alex Reibman in a tweet Monday, which also showed a major dropoff in usage following the release of the update.

It’s unclear whether OpenAI’s latest update will truly kill any generative AI startups with its latest update. With funding from Microsoft, OpenAi can easily continue to add new features, like it did with PDF analysis, which could be another startup’s whole business.

OpenAI did not immediately respond to Gizmodo’s request for comment.

The ChatGPT developer is in a particularly good position to weather the Biden Administration’s AI Executive Order, as the largest large language model in the space. Biden’s executive order requires generative AI companies to share safety test results and develop new standards to protect against worst-case scenarios. The largest players of AI, such as OpenAI, Meta and Anthropic, have more resources to handle such requirements, whereas smaller AI startups may be stifled by the regulation.

OpenAi is hosting its Dev Day on Nov. 6, the company’s first developer conference where it will try to wow developers into building new products using ChatGPT.


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AI Eclipse TLDR:

OpenAI has updated its ChatGPT model to include PDF services, causing concern among several AI startups that built themselves around PDF analysis as an add-on to ChatGPT. These startups, known as “wrapper startups,” provide additional features and capabilities not offered by OpenAI. The update may render these startups useless, leading some executives to express their frustration on social media platforms. However, it remains uncertain whether OpenAI’s update will completely eliminate generative AI startups. With financial support from Microsoft, OpenAI has the ability to continue adding new features, potentially encroaching on other startups’ business models. OpenAI has yet to respond to requests for comment. As the largest language model in the field, OpenAI is in a strong position to comply with the Biden Administration’s AI Executive Order, which requires generative AI companies to share safety test results and establish new standards. Larger AI players like OpenAI, Meta, and Anthropic have more resources to meet these regulatory requirements, potentially stifling smaller startups. OpenAI will be hosting its first developer conference, Dev Day, on November 6, where it aims to impress developers and encourage them to build new products using ChatGPT.