Introduction to OpenAI’s New Venture
OpenAI has recently overtaken Elon Musk’s SpaceX to become the world’s most valuable private company, with a valuation of $500 billion. To justify this price tag, OpenAI is pushing into the hardware industry. One of their main goals is to improve the "smart speakers" of the past decade, such as Amazon’s Echo speaker and its Alexa digital assistant.
The Challenge of Creating a Useful Device
The company is seeking to build a more powerful and useful machine than its predecessors. However, two people familiar with the project have stated that settling on the device’s "voice" and its mannerisms has been a challenge. One issue is ensuring the device only chimes in when useful, preventing it from talking too much or not knowing when to finish the conversation. This is an ongoing issue with ChatGPT, OpenAI’s popular chatbot.
Balancing Model Personality
"The concept is that you should have a friend who’s a computer who isn’t your weird AI girlfriend… like [Apple’s digital voice assistant] Siri but better," said one person who was briefed on the plans. OpenAI is looking for "ways for it to be accessible but not intrusive." According to another person close to the project, "Model personality is a hard thing to balance. It can’t be too sycophantic, not too direct, helpful, but doesn’t keep talking in a feedback loop."
Entering a Difficult Market
OpenAI’s device will be entering a difficult market, where other AI companions have been criticized for being "creepy" or having a "snarky" personality. For example, Friend, an AI companion worn as a pendant around your neck, has received negative reviews. An AI pin made by Humane, a company that OpenAI’s CEO personally invested in, has been scrapped.
Building a Hardware Business
Despite the challenges, OpenAI has been on a hiring spree to build its hardware business. The company’s acquisition of io brought in more than 20 former Apple hardware employees, who were poached by Ive from his alma mater. OpenAI has also recruited at least a dozen other Apple device experts this year, according to LinkedIn accounts. Additionally, the company has poached members of Meta’s staff working on the Big Tech group’s Quest headset and smart glasses.
Manufacturing and Production
OpenAI is working with Chinese contract manufacturers, including Luxshare, to create its first device. According to two people familiar with the development, the device might be assembled outside of China. OpenAI and LoveFrom, Ive’s design group, declined to comment on the matter.
Conclusion
OpenAI’s push into the hardware industry is an exciting development, with the potential to create a more powerful and useful device than its predecessors. However, the company faces challenges in balancing model personality and entering a difficult market. With its hiring spree and partnerships with contract manufacturers, OpenAI is well-positioned to succeed in this new venture.
FAQs
Q: What is OpenAI’s valuation?
A: OpenAI’s valuation is $500 billion, making it the world’s most valuable private company.
Q: What is OpenAI’s goal in the hardware industry?
A: OpenAI’s goal is to improve the "smart speakers" of the past decade and create a more powerful and useful device.
Q: What is the challenge in creating a useful device?
A: The challenge is ensuring the device only chimes in when useful and balancing its model personality to be accessible but not intrusive.
Q: Who is OpenAI working with to create its first device?
A: OpenAI is working with Chinese contract manufacturers, including Luxshare, and has recruited former Apple hardware employees and Meta staff to build its hardware business.
