It’s a Code Red moment for the dominant AI players

Then, as those commitments and the amount of funding required to meet them grew, they began taking on debt, some off the balance sheet, to finance the trillions of dollars in spending they had committed to.

Load

This is a pretty fragile industry structure with Nvidia and OpenAI at the center.

On Monday, OpenAI’s CEO reported – in a memo to employees first published by the technology-focused online publication The information – declared a “code red,” accelerating efforts to improve the quality of its ChatGPT chatbot while delaying development of a number of products – advertising, shopping, health and other apps – that it had hoped would generate more revenue with ChatGPT.

This sudden hint of urgency came after it became clear that OpenAI was facing serious competition for the first time in the three years since ChatGPT was launched and the AI ​​craze began.

Coincidentally, the competition also threatens to undermine Nvidia’s dominance and…