OpenAI says AI helped design chip in just 9 months
What's the story
OpenAI, the company behind ChatGPT, is expanding its artificial intelligence (AI) technology into specialized industries. The move comes as part of a strategy to stay ahead of open-source competitors and capitalize on the growing demand for industry-specific AI solutions. The company's Chief Financial Officer (CFO) Sarah Friar revealed this at Goldman Sachs's Communacopia + Technology Conference in San Francisco this week.
Strategic shift
New focus areas and challenges
OpenAI is now focusing on sectors like chip design, life sciences, and financial services. The company is also experimenting with pricing models based on business outcomes rather than usage.
This comes as more enterprises are looking for a return on investment in their AI spending.
The shift to industry-specific AI and aggressive pricing comes amid growing competition from Chinese open-weight models and companies like Anthropic.
Positive outcome
Real-world applications of AI
OpenAI has successfully used its own models in developing its Jalapeno AI chip, which was "taped out" within nine months.
The term "taped out" refers to the stage when a chip design is finalized and sent to a factory for production.
This achievement highlights the effectiveness of OpenAI's technology in real-world applications.
Model performance
Price cuts and increased usage
OpenAI recently slashed the price of its lower-cost Luna model by a whopping 80%. The move has resulted in a nearly 10-fold increase in usage.
The company's coding tool Codex is also witnessing traction with 25 million users.
OpenAI's enterprise revenue grew by 32% from June to July, outpacing the overall annualized revenue growth of 20% during the same period.
By mid-year, its enterprise and consumer businesses had reached an even split, ahead of its target to achieve this balance.