OpenAI CEO Sam Altman speaks during the OpenAI DevDay event on November 06, 2023 in San Francisco, California. Altman delivered the keynote address at the first ever Open AI DevDay conference.
Justin Sullivan | Getty Images
OpenAI announced its new, more powerful GPT-4 Turbo artificial intelligence model Monday during its first in-person event, and revealed a new option that will let users create custom versions of its viral ChatGPT chatbot. It’s also cutting prices on the fees that companies and developers pay to run its software.
OpenAI’s announcements show that one of the hottest companies in tech is rapidly evolving its offerings in an effort to stay ahead of rivals like Anthropic, Google and Meta in the AI arms race. ChatGPT, which broke records as the fastest-growing consumer app in history months after its launch, now has about 100 million weekly active users, OpenAI said Monday. More than 92% of Fortune 500 companies use the platform, up from 80% in August, and they span across industries like financial services, legal applications and education, OpenAI CTO Mira Murati told reporters Monday.
The event also included a surprise appearance by Microsoft CEO Satya Nadella.
“The systems that are needed as you aggressively push forward on your road map require us to be on the top of our game, and we intend fully to commit ourselves fully to making sure you all… have not only the best systems for training and inference, but also the most compute,” Nadella told OpenAI CEO Sam Altman while onstage together. He added, “That’s the way we’re going to make progress.”
Earlier this year, Microsoft‘s expanded investment in OpenAI — an additional $10 billion — made it the biggest AI investment of the year, according to PitchBook, and in April, the startup reportedly closed a $300 million share sale at a valuation between $27 billion and $29 billion, with investments from firms such as Sequoia Capital and Andreessen Horowitz. As recently as last month, OpenAI was reportedly in talks to close a deal that would lead to an $80 billion valuation.
In his speech Monday, Altman said the day’s announcements came from conversations with developers about their needs over the past year. And when it comes to GPT-5, Altman told reporters, “We want to do it, but we don’t have a timeline.”
Here’s what OpenAI announced Monday:
GPT-4 Turbo
OpenAI ChatGPT
GPT-4 Turbo is the latest AI model, and it now provides answers with context up to April 2023. Prior versions were cut off at January 2022. For example, if you asked GPT-4 who won the Super Bowl in February 2022, it wouldn’t have been able to tell you. GPT-4 Turbo can.
“We are just as annoyed as all of you, probably more, that GPT’s knowledge about the world ended in 2021,” Altman said in a speech Monday.
It also accepts a lot more input. While earlier versions limited you to about 3,000 words, the GPT-4 Turbo accepts inputs of up to 300 pages in length. It means you could ask it to summarize entire books.
GPT-4 also supports DALL-E 3 AI-generated images and text-to-speech. It also has six preset voices to choose from, so you can choose to hear the answer to a query in a variety of different voices.
OpenAI said GPT-4 Turbo is available in preview for developers now and will be released to all in the coming weeks.
OpenAI said it’s also cutting the prices for developers. “GPT-4 Turbo input tokens are 3x cheaper than GPT-4 at $0.01 and output tokens are 2x cheaper at $0.03,” the company said, which means companies and developers should save more when running lots of information through the AI models.
Personalized chatbots
Personalized chatbot builder
OpenAI
Until now, ChatGPT’s enterprise and business offerings were the only way people could upload their own data to train and customize the chatbot for particular industries and use cases. Now it’s adding the option for anyone to create custom chatbots.
AI “agents” are one of the buzziest uses of the technology recently, with many startups vying to offer the kind of personalized AI tools that consumers may already be familiar with via pop culture representations, such as Tony Stark’s J.A.R.V.I.S. in Marvel movies, or Pam in Disney Channel’s Smart House.
“Anyone can easily build their own GPT—no coding is required,” the company wrote in a release. “You can make them for yourself, just for your company’s internal use, or for everyone.Creating one is as easy as starting a conversation, giving it instructions and extra knowledge, and picking what it can do, like searching the web, making images or analyzing data.”
More than two million developers building their own tools using ChatGPT’s API will also be able to customize the chatbot, meaning consumers will likely see personalized AI chatbots popping up in many more places, including apps and websites they use regularly.
Open AI’s version of the App Store
OpenAI GPT Store
OpenAI
Now that users and developers can launch their own, personalized AI chatbots, OpenAI is introducing a new revenue driver for the company: Its own version of the app store.
The GPT Store allows people who create their own GPTs to make them available for public download, and in the coming months, OpenAI said people will be able to earn money based on their creation’s usage numbers.
“Once in the store, GPTs become searchable and may climb the leaderboards,” the company wrote in a release. “We will also spotlight the most useful and delightful GPTs we come across in categories like productivity, education, and ‘just for fun.'”
As for revenue share for people who create custom chatbots featured in the store, the company will start with “just sharing a part of the subscription revenue overall,” Altman told reporters Monday. Right now, the company is planning to base the payout on active users plus category bonuses, and may support subscriptions for specific GPTs later.
“What OpenAI is really in the business of selling is intelligence — and that, and intelligent agents, is really where it will trend over time,” Altman told reporters.
New all-in-one image-generation, browsing and summarization
Until Monday, ChatGPT users had to hop between different apps and websites to use all of OpenAI’s tools, which contributed to a slightly higher learning curve. On Monday, the company announced it has streamlined its AI tools into one place: Using ChatGPT now offers image generation via DALL-E, browsing, data analysis, document upload and PDF search. Before now, Anthropic’s Claude was the only competitor chatbot to allow PDF search.
Copyright shield
As generative AI-related legal action is on the rise, Altman announced Monday that OpenAI will “step in and defend our customers” and “pay the costs incurred if you face legal claims around copyright infringement.” It echoes similar statements made by Google, Microsoft and Adobe.
Microsoft owns lots of Nvidia graphics processing units, but it isn’t using them to develop state-of-the-art artificial intelligence models.
There are good reasons for that position, Mustafa Suleyman, the company’s CEO of AI, told CNBC’s Steve Kovach in an interview on Friday. Waiting to build models that are “three or six months behind” offers several advantages, including lower costs and the ability to concentrate on specific use cases, Suleyman said.
It’s “cheaper to give a specific answer once you’ve waited for the first three or six months for the frontier to go first. We call that off-frontier,” he said. “That’s actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models.”
Suleyman made a name for himself as a co-founder of DeepMind, the AI lab that Google bought in 2014, reportedly for $400 million to $650 million. Suleyman arrived at Microsoft last year alongside other employees of the startup Inflection, where he had been CEO.
More than ever, Microsoft counts on relationships with other companies to grow.
It gets AI models from San Francisco startup OpenAI and supplemental computing power from newly public CoreWeave in New Jersey. Microsoft has repeatedly enriched Bing, Windows and other products with OpenAI’s latest systems for writing human-like language and generating images.
Microsoft’s Copilot will gain “memory” to retain key facts about people who repeatedly use the assistant, Suleyman said Friday at an event in Microsoft’s Redmond, Washington, headquarters to commemorate the company’s 50th birthday. That feature came first to OpenAI’s ChatGPT, which has 500 million weekly users.
Through ChatGPT, people can access top-flight large language models such as the o1 reasoning model that takes time before spitting out an answer. OpenAI introduced that capability in September — only weeks later did Microsoft bring a similar capability called Think Deeper to Copilot.
Microsoft occasionally releases open-source small-language models that can run on PCs. They don’t require powerful server GPUs, making them different from OpenAI’s o1.
OpenAI and Microsoft have held a tight relationship shortly after the startup launched its ChatGPT chatbot in late 2022, effectively kicking off the generative AI race. In total, Microsoft has invested $13.75 billion in the startup, but more recently, fissures in the relationship between the two companies have begun to show.
Microsoft added OpenAI to its list of competitors in July 2024, and OpenAI in January announced that it was working with rival cloud provider Oracle on the $500 billion Stargate project. That came after years of OpenAI exclusively relying on Microsoft’s Azure cloud. Despite OpenAI partnering with Oracle, Microsoft in a blog post announced that the startup had “recently made a new, large Azure commitment.”
“Look, it’s absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft,” Suleyman said. “At the same time, I think about these things over five and 10 year periods. You know, until 2030 at least, we are deeply partnered with OpenAI, who have [had an] enormously successful relationship for us.
Microsoft is focused on building its own AI internally, but the company is not pushing itself to build the most cutting-edge models, Suleyman said.
“We have an incredibly strong AI team, huge amounts of compute, and it’s very important to us that, you know, maybe we don’t develop the absolute frontier, the best model in the world first,” he said. “That’s very, very expensive to do and unnecessary to cause that duplication.”
President Trump’s new tariffs on goods that the U.S. imports from over 100 countries will have an effect on consumers, former Microsoft CEO Steve Ballmer told CNBC on Friday. Investors will feel the pain, too.
Microsoft’s stock dropped almost 6% in the past two days, as the Nasdaq wrapped up its worst week in five years.
“As a Microsoft shareholder, this kind of thing is not good,” Ballmer said, in an interview with Andrew Ross Sorkin that was tied to Microsoft’s 50th anniversary celebration. “It creates opportunity to be a serious, long-term player.”
Ballmer was sandwiched in between Microsoft co-founder Bill Gates and current CEO Satya Nadella for the interview.
“I took just enough economics in college — that tariffs are actually going to bring some turmoil,” said Ballmer, who was succeeded by Nadella in 2014. Gates, Microsoft’s first CEO, convinced Ballmer to join the company in 1980.
Gates, Ballmer and Nadella attended proceedings at Microsoft’s Redmond, Washington, campus on Friday to celebrate its first half-century.
Between the tariffs and weak quarterly revenue guidance announced in January, Microsoft’s stock is on track for its fifth straight month of declines, which would be the worst stretch since 2009. But the company remains a leader in the PC operating system and productivity software markets, and its partnership with startup OpenAI has led to gains in cloud computing.
“I think that disruption is very hard on people, and so the decision to do something for which disruption was inevitable, that needs a lot of popular support, and nobody could game theorize exactly who is going to do what in response,” Ballmer said, regarding the tariffs. “So, I think citizens really like stability a lot. And I hope people — individuals who will feel this, because people are feeling it, not just the stock market, people are going to feel it.”
Ballmer, who owns the Los Angeles Clippers, is among Microsoft’s biggest fans. He said he’s the company’s largest investor. In 2014, shortly after he bought the basketball team for $2 billion, he held over 333 million shares of the stock, according to a regulatory filing.
“I’m not going to probably have 50 more years on the planet,” he said. “But whatever minutes I have, I’m gonna be a large Microsoft shareholder.” He said there’s a bright future for computing, storage and intelligence. Microsoft launched the first Azure services while Ballmer was CEO.
Earlier this week Bloomberg reported that Microsoft, which pledged to spend $80 billion on AI-enabled data center infrastructure in the current fiscal year, has stopped discussions or pushed back the opening of facilities in the U.S. and abroad.
JPMorgan Chase’s chief economist, Bruce Kasman, said in a Thursday note that the chance of a global recession will be 60% if Trump’s tariffs kick in as described. His previous estimate was 40%.
“Fifty years from now, or 25 years from now, what is the one thing you can be guaranteed of, is the world needs more compute,” Nadella said. “So I want to keep those two thoughts and then take one step at a time, and then whatever are the geopolitical or economic shifts, we’ll adjust to it.”
Gates, who along with co-founder Paul Allen, sought to build a software company rather than sell both software and hardware, said he wasn’t sure what the economic effects of the tariffs will be. Today, most of Microsoft’s revenue comes from software. It also sells Surface PCs and Xbox consoles.
“So far, it’s just on goods, but you know, will it eventually be on services? Who knows?” said Gates, who reportedly donated around $50 million to a nonprofit that supported Democratic nominee Kamala Harris’ losing campaign.
AppLovin CEO Adam Foroughi provided more clarity on the ad-tech company’s late-stage effort to acquire TikTok, calling his offer a “much stronger bid than others” on CNBC’s The Exchange Friday afternoon.
Foroughi said the company is proposing a merger between AppLovin and the entire global business of TikTok, characterizing the deal as a “partnership” where the Chinese could participate in the upside while AppLovin would run the app.
“If you pair our algorithm with the TikTok audience, the expansion on that platform for dollars spent will be through the roof,” Foroughi said.
The news comes as President Trump announced he would extend the deadline a second time for TikTok’s Chinese-owned parent company ByteDance to sell the U.S. subsidiary of TikTok to an American buyer or face an effective ban on U.S. app stores. The new deadline is now in June, which, as Foroughi described, “buys more time to put the pieces together” on AppLovin’s bid.
“The president’s a great dealmaker — we’re proposing, essentially an enhancement to the deal that they’ve been working on, but a bigger version of all the deals contemplated,” he added.
AppLovin faces a crowded field of other interested U.S. backers, including Amazon, Oracle, billionaire Frank McCourt and his Project Liberty consortium, and numerous private equity firms. Some proposals reportedly structure the deal to give a U.S. buyer 50% ownership of the company, rather than a complete acquisition. The Chinese government will still need to approve the deal, and AppLovin’s interest in purchasing TikTok in “all markets outside of China” is “preliminary,” according to an April 3 SEC filing.
Correction: A prior version of this story incorrectly characterized China’s ongoing role in TikTok should AppLovin acquire the app.