Everyday AI Podcast – An AI and ChatGPT Podcast - Ep 742: OpenAI's Most Chaotic Week Yet? Sora's Dead, New Models are Coming and What it Means for You

Episode Date: March 26, 2026

Has OpenAI ever had a more chaotic week than the past 7ish days? 🤪They're prepping for an IPO. They're building a super app. They might get sued by their biggest investor. They're... planting a new HQ in Google's backyard. And they killed one of their most viral products in Sora. Crazier part? That's not even the half of it. And while it's sometimes a waste of time to keep up with the see-sawing of big AI companies, this is different. However OpenAI ultimately comes out of this week may just set the precedent for the next few years of AI. Join us to find out why. Newsletter: Sign up for our free daily newsletterMore on this Episode: Episode PageJoin the discussion on LinkedIn: Thoughts on this? Join the convo on LinkedIn and connect with other AI leaders.Upcoming Episodes: Check out the upcoming Everyday AI Livestream lineupWebsite: YourEverydayAI.comEmail The Show: info@youreverydayai.comConnect with Jordan on LinkedInTopics Covered in This Episode:OpenAI Sora Shutdown Six Months Post-LaunchDisney $1 Billion Licensing Deal CanceledChatGPT Shopping Feature Retired, Pivot to DiscoveryOpenAI Workforce Doubling, Hiring Meta ExecsChatGPT Codex and Atlas Merged Into Super AppOpenAI Raises $10 Billion, Prepares for IPOMicrosoft-Amazon Cloud Deal Sparks Legal ThreatsNew OpenAI Model "Spud" AnnouncedOpenAI Enterprise Strategy: Focused Product LineAnthropic Claude Popularity and Market ImpactTimestamps:00:00 "OpenAI's Chaotic Week Unfolds"03:24 "Everyday AI for Business"06:46 Social Media & AI Shifts09:59 "Chaotic Week for OpenAI"15:09 "OpenAI Ads and Anthropic Strategy"17:43 OpenAI Nears Trillion-Dollar Valuation21:48 "OpenAI's Super App Vision"24:27 OpenAI's Compute Power Maneuvers27:00 "Microsoft vs OpenAI Tensions"31:18 "OpenAI's Resilience and Rivalry"34:04 "AI's Wild Week Recap"Keywords: OpenAI, OpenAI chaos, trillion dollar IPO, Microsoft lawsuit, Amazon cloud deal, Sora shutdown, AI video platform, Disney licensing agreement, Capital infusion, ChatGPT super app, ChatGPTSend Everyday AI and Jordan a text message. (We can't reply back unless you leave contact info) Start Here ▶️Not sure where to start when it comes to AI? Start with our Start Here Series. You can listen to the first drop -- Episode 691 -- or get free access to our Inner Cricle community and all episodes: StartHereSeries.com Also, here's a link to the entire series on a Spotify playlist. 

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Starting point is 00:00:00 This is the Everyday AI Show, the everyday podcast where we simplify AI and bring its power to your fingertips. Listen daily for practical advice to boost your career, business, and everyday life. Meet Firefly AI Assistant, now live in Adobe Firefly, the all-in-one creative AI studio. Just describe what you want to create and the assistant handles the rest, orchestrating multi-step workflows across Photoshop, Premiere Express, and more in one conversational interface. You direct the outcome. The assistant accelerates execution. The past week has been a chaotic roller coaster ride for OpenAI,
Starting point is 00:00:49 and if you've been following, you may have gotten whiplash. So the company with plans to go public has grabbed just about every headline, good and bad over the past seven days. And as a former journalist and someone that's been covering AI daily for three years, this was not a normal week for Open AI or any. big tech company, really. I mean, the amount of moves they're making is head spinning. And I see this as the chaos before the calm before the storm. And the main headline that most people will be talking about this week is that Open AI killed its once viral AI video platform SORA. Or maybe that their
Starting point is 00:01:32 biggest investor in Microsoft may reportedly sue them for a deal they did with Amazon. Or maybe that the chat GPT in app shopping experience fail, then didn't go as planned. So doubters will see those things and the OpenAI naysayers will say that these are the latest signs that OpenAI is bound to fail. Personally, I see it a different way. I see a company that threw the proverbial spaghetti at the wall throughout 2025 to see what's stuck and is finally clearing all that mass and is honing its focus in on its core products. as it prepares to potentially go public at a more than $1 trillion valuation.
Starting point is 00:02:14 So whatever your viewpoint is on OpenAI, this week alone have like a year's worth of developments. And even if you're a casual chat GPT user or novice in the AI space, you absolutely need to understand the past week of developments at OpenAI because it will undoubtedly be talked about in a decade as a moment that started to either make or break the company. All right. We're going to be getting into it on today's episode of Everyday AI. But before we tell you about that, here's the big picture. Ready?
Starting point is 00:02:46 Here's what's going on. Open AI made more moves in seven days than most companies make in a year. But essentially, they're just killing what isn't working and they're going in all in on Chad GBT in its new super app platform. And like I said, this week, I think it's going to be remembered as the make or break point when we look back in three, five, ten years on where Open AI is or maybe isn't as a company. And I think you will be able to wind back in time and look at this week in Open AI's response to this specific week as that moment in time.
Starting point is 00:03:21 So on today's show, we're going to be talking about what Open AI's retreats and pivots reveal about where the entire AI industry is actually headed. Why I think Open AI squashing side projects like SORA and Shoeuvre and Shoeuvre, shopping isn't a weakness. It's actually a strength. And why Open AI's chaotic week is actually a very calculated strategy to prepare for a potential trillion dollar IPO. All right. If you're new here, welcome to Everyday AI. My name's Jordan. And while we do this every day, everyday AI, it's for you. It's your daily live stream podcast, free daily newsletter, helping everyday business leaders like you and me, keep up with the roller coaster of AI. I tell you
Starting point is 00:04:04 what's important, what's not. You take that information and be the smartest person in AI at your company to grow that company and your career. So this thing's unedited, unscripted, just coming with the real takes for you here. But if you want all the AI news for today, aside from what we're going over, make sure to check out our newsletter at your everyday AI.com. So here's the most recent big headline as we jump into it. Because this is what I think most people are going to going to be talking about for well, at least a week or so and maybe longer. And it's that SORA is dead. So Open AI just announced that the standalone SORA app is shutting down. And this happened just six months after launch. So reports say it's consuming too much compute. And I
Starting point is 00:04:56 absolutely agree with that. So as of like two weeks ago, we saw reports that the plan was to fold SORA ultimately into Chad Chb-T. And we actually saw some coded leaks that showed that they were working on this. But, you know, two weeks after that, this thing is killed entirely. And it's not just the SORA app, right? It was also everything that it had along with it. You know, importantly, that billion-dollar Disney deal, right? There was a certain licensing agreements that Open AI and Disney worked out for, you know,
Starting point is 00:05:32 to use Disney characters. And as part of that, Disney provided a $1 billion capital infusion. So yet that's gone now. But reportedly, no money ever changed hands. But what's important to remember here is what Sam Altman said when SORA was first released. He essentially said that if SORA didn't improve people's lives in six months, that they'd readjust. And here we are, less than six months later, and the first six months later,
Starting point is 00:06:01 months later and well it's gone um and i'll say what uh i said then now if you didn't hear uh after sorra came out i very much called it brain rot right i think a lot of people for whatever reason accuse me of being an open ai uh you know shilling for them that's not my thing they've never paid me a dollar um well their competitors have which is interesting uh no i i i say that because i that Open AI top to bottom is the best and the easiest AI platform if you're trying to bring your day-to-day knowledge work into an AI operating system. I think chat GPT is still the one best platform for that top to bottom for most enterprises. But it doesn't mean I blindly think that everything they do is amazing when it came out even though it was viral. And I said, yeah, there's some
Starting point is 00:06:55 good use cases and you can get some utility out of this, especially if you're in charge of creative at your company, but I said for the most part, SORA is brain rot. Yeah, it's cool. It's fun. You know, but you had to sign up for a specific app to use it. And the app was essentially just AI videos on repeat. I'll say the same thing about meta's new vibes platform. It's, it's brain rot, right? I'm not someone that is scrolling, you know, social media, shorts, reels, TikToks, right? That's, that's not me. I think that's, you know, it's my opinion, right? But I don't think that really helps anyone. So actually got to tip the cap here to Sam Allman for following through, right? Reportedly, there's other reasons that it maybe just wasn't bringing in enough money.
Starting point is 00:07:41 And Open AI needed to essentially reallocate the massive compute that they needed to keep up with the SORA demand, even though it wasn't as viral as it was. I think that there was still a lot of, you know, heavy power users that were eating up a lot of computers. And instead, you know, Open AI has said that they're going to kind of reallocate that to other areas of the business. But I think people are going to look at this as well, no, SORA failed, right? It didn't bring in enough money. I don't think that. But Sora going down is just the latest in a absolutely wild week for Open AI.
Starting point is 00:08:17 Ready? I'm going to read you the timeline of the last couple of days, the last week or so here. This is a week, ready? not a year, not a quarter, not a month. This is the week. All right. So March 18th, we saw reports that OpenAI's biggest investor, Microsoft, is considering suing the company over its cloud deal with Amazon.
Starting point is 00:08:41 March 19th, we finally got reports that OpenAI was going to merge ChatGPT, Codex, and their browser Atlas into a single desktop super app. That's some market moving news. Then the next day on March 20th, we got the story that Open AI was abandoning their instant checkout shopping feature. So, you know, the headline said that it failed and that they were instead pivoting to visual product discovery. Then on March 21st, yeah, so that was, yeah, on the weekend, we saw a story that said that Open AI was planning to double their workforce. That does not happen, right? So I think right now their headcount was roughly 4,500.
Starting point is 00:09:25 And reports say that they're going to try to hit 8,000 by the end of the year. So nearly doubling their workforce, even though in January, they said that they were going to slow down hiring. Then also over the weekend, we saw Open AI hiring a meta-exec to lead their advertising push. They launched a library feature, a small thing, but I think it actually has larger implications than we think. Then also over the weekend, we saw some pre-IPO, right? So, yeah, Open AI reportedly preparing for its initial public offering this year. So we saw some pre-IPO docs flag Microsoft reportedly as a major risk for OpenAI. We also saw the potential helium fusion energy deal mounting with Sam Altman stepping down from the helium board.
Starting point is 00:10:13 And then the Mountain View campus lease. My gosh. they are nearly half million square foot building that they're now planting in Google's backyard. Right. And then, oh, Sora killed. Oh, and not only that, you know, earlier this week on Tuesday, we got the news that SOR was killed and Disney walking away from the one billion other deal, but also that they raised another $10 billion as part of a $120 billion round
Starting point is 00:10:42 and that they have their newest model. That's a completely new pre-trained model. so not a, you know, a slightly step up from a 5.4. They have a whole new model that's been pre-trained from scratch, ready to go, and they just had a $1 billion nonprofit pledge. This is all in seven days, right? It's been an absolutely chaotic week for OpenAI. So let's dig in a little bit more.
Starting point is 00:11:19 Adobe just introduced an entirely new way to create, bringing the power and precision of its creative. suite into one conversational experience. Meet Firefly AI assistant, now live in the Adobe Firefly app, the all-in-one creative AI studio. Powered by Adobe's creative agent, Firefly AI assistant lets you start with your vision, just describe what you want, and shape the outcome as it takes form with the assistant. The assistant orchestrates multi-step workflows, drawing on 60 plus pro-grade tools across Adobe Creative Cloud apps, including Photoshop, Illustrator, Premiere, Lightroom Express and more to help bring your ideas to life.
Starting point is 00:11:57 You can also get started with creative skills, a growing library of pre-built workflows for common creative tasks like batch editing photos, creating mood boards, portrait retouching, and creating social variations. Every step the assistant takes is visible so you can refine, redirect, or take over at any time. You stay in the driver's seat as the creative director. Adobe Firefly AI assistant now in public beta. See it today at Firefly.adobie.com. And I think this kind of goes into a couple of phases, right?
Starting point is 00:12:36 Because ultimately, I think they're number one, sharpening the core. Number two, they're shedding the side quests. And number three, they're fueling the AI engine with capital. Four, they're running into some infrastructure problems. And five, I think all of this ultimately sets up for the new playbook. So the shutting of the side quests was a lot more than just SORA. So we also said that the instant checkout that Open AI was demoing inside of ChatGBT GT, well, it wasn't really going well.
Starting point is 00:13:08 And it seems like some of their biggest partners like Walmart, Shopify and Etsy, all pulled away. And reportedly Walmart had a three times lower conversion rate inside of ChatGBT, ZBT, then on Walmart's own website. So instead, OpenAI, is now pivoting from kind of owning the checkout to instead owning the discovery. So one thing that they're going to be pushing more instead of, you know, bringing all this different, you know, merchant checkout inside of the chat chbt,
Starting point is 00:13:38 you know, new super app, whatever that may be, or in current days chat chvety app, instead bringing in a more owning the discovery. So comparisons, reviews, and then routing them to the retailer. And those aren't the only side quest that died, right? That's just what died this week. Right. But before this week, we saw reports that their highly anticipated adult mode was delayed. Their AI hardware was delayed, you know, maybe until 2027. The Stargate extension was canceled.
Starting point is 00:14:10 And then you have other, you know, big, splashy features from 2025, right? All the spaghetti that got thrown on the wall, these a lot of things just haven't been touched, right? In advance voice mode, barely touched or updated. agent mode made a huge splash, barely touch or updated. So it does seem like this combination of open AI sharpening the core in shedding side quests just to really focus on what matters. But that's not what the narrative is saying, right? There's been this recent, I think the rest of the world is finally a very small sliver, right,
Starting point is 00:14:48 is starting to like understand who Anthropic is, right? If you listen to this podcast all the time, you obviously know who Anthropic is. But I think the rest of the world is like, oh, what's this Claude thing, right? It's funny. I actually got a group text, you know, from a friend group, right? Someone had just discovered Claude for the first time. But that's the reality, right? Outside of our, you know, AI bubble that many of us live in, most people have never heard of
Starting point is 00:15:13 Anthropic. They don't know what Claude is. So I think that there's been this recent, you know, kind of surge where the rest of the, you know, non-AI bubble world is figuring out about Claw. And so you have that coincidentally coinciding with Open AIs most chaotic week ever. So this, you know, narrative that's bubbling to the surface is, well, oh, opening AI is going to fail. They're going to go bankrupt. It's all anthropic.
Starting point is 00:15:40 It's Claude. No, that's absolute nonsense, right? Full disclosure. I love Claw. I hate their limits. Their limits stink. I have a completely different business plan than Open AI. A lot of their features aren't as good,
Starting point is 00:15:55 but I pay $200 a month for Claude Max, just like I pay $200 a month for Chad ChpT Pro. It's a great product, but they're not losing to Anthropic. That's just a narrative that I think is popular to post about on social media, because Claude has, well, they've been winning 2026 so far, right? I think hands down Google won 2025, Open AI won 2023, 2024. And so far, at least, it's very early, Anthropic may be winning 2026.
Starting point is 00:16:30 But this doesn't mean that Open AI is going bankrupt. And yes, we know they're burning money. But guess what? We've talked about this on the show before. Some of the most profitable companies in the history of the American enterprise burned billions of dollars, tens of billions of dollars before. ever becoming profitable, right? And we've seen reports that OpenAI may not be profitable until 2030. I'm actually, would say maybe before that, I am, even though the first round of advertising in Chats
Starting point is 00:17:01 QVT didn't work as well as they thought, I think with Open AI's recent hire, which we're going to talk about here at a couple of minutes, yeah, I think Open AI is going to be literally printing money with their ads business. Anyways, I actually think that killing all of these side projects, people only see the failure. I see that as a strength. Because essentially, what we're seeing in 2026 with Anthropic winning the year, they're not winning the race,
Starting point is 00:17:30 not even close, but they're winning the year. I think that's because, well, Anthropic from the beginning said, we don't care about users, the total number of users. We want to own a domain. We want to own coding. Because once you can own coding,
Starting point is 00:17:45 you can start to own agentic workflows. You can own the harness. And then as coding becomes better and recursive, perhaps, you know, then you can start to own different sectors of knowledge work. And I think that's where we see with Anthropic right now. And maybe this might be the first time. Maybe. Again, this could be coincidental, the timing of opening eye preparing for an IPO with
Starting point is 00:18:10 Anthropics, you know, kind of dominance in certain sectors, right? High value knowledge work, legal, finance, et cetera, right? But it seems now like opening eyes taking a play, taking a page out of the anthropic playbook and saying, okay, well, now we need to narrow our focus and start, you know, really doubling down in the areas that matter. You know, Sora didn't stick. Shopping didn't stick. So they scraped it off the wall and moved on. And that's a good thing. So what's it mean for you?
Starting point is 00:18:42 Well, expect in the future, right, when we see a, the new super app. know, any week, any month now, I think what we will see is more product updates. And I think we will see fewer kind of distractions, so to speak, out of open AI. And I think we will see at least for the second half of 2026, a likely more focused product line, focus on the enterprise, focus on knowledge work, and focus on those high value sectors. So more depth, I think, to the tools that you actually use. And you can tell that's coming because the money hasn't stopped. Investors, for the most part, the big ones writing the billion dollar checks, they're not
Starting point is 00:19:34 dumb, right? You know, Open AI just this week raised another $10 billion in their total latest round now exceeds $120 billion with a post-money valuation of $850 billion as they prepare for their IPO. And let me just say this, right? If you don't follow things like I follow, right? So if you look at market caps of companies in the U.S. right now with that post-money valuation of $850 billion, opening I would be the 11th largest company in the U.S. by market cap, right? Technically their post-money valuation would be their market cap today. If they were a public company, they're a private company, but they're the most valuable private company out right now.
Starting point is 00:20:20 They will be, by the time they IPO, especially if it hits the trillion dollars, they'll be either the ninth or the 10th biggest company in America by market cap, right? Yes, they're not going to make money for a couple of years. And that's very normal for a company like this. And I think that you just have to follow the money, even through all this, even through all the reports, you know, oh, open AIs, shutting. down, they're going bankrupt. Guess what?
Starting point is 00:20:52 They're still cashing $100 billion rounds. And I don't think that's going to change. And their CFO, Sarah Fryer, did recently just say this. She said, I need to make sure the company is healthy and ready to face the public markets. Kind of alluding to
Starting point is 00:21:07 all of these kind of side quests that are, you know, now dying or dead or dormant. And instead, the core business is growing. and improving. And a big part of that core business will be the new super app that we saw reports of
Starting point is 00:21:29 earlier this week. So number one, I'm glad this is happening. Right. I've been shouting on this very, you know, podcast that I do know some open AI people listened to and I have reached out to them and said like, hey, and I know I'm not the only one, right? But I've been like, what Anthropic is doing with their desktop app is great in the Mac, right? It's one app. It has Claude chat, Claude, Co Work, Claude, Code. Very easy, very simple, right?
Starting point is 00:22:00 Where right now, ChatGBTGBT has a chat desktop app. They have a Codex and they have an Atlas browser, right? I'm staring at three different, you know, icons on my doc right now. It's confusing. And what I still don't think people understand about Codex as an example, right, as a, you know, icons. Claude and Claude Co-work, you know, take off in a very viral way. Codex can do up until Claude this past week, just kind of introduce the complete computer use where Claude can control your entire computer, which is cool to use. I love it. Eats through credits, you know, or sorry, ease through tokens really quickly.
Starting point is 00:22:46 But until that, you could do almost everything in codex that you could do in codex that you could do in co-work or Claude Code. And I don't think people realize that. And I think maybe that's a reason why OpenAI is going away from this strategy of having the three different apps and bringing it all into one roof because Codex is a freaking monster for knowledge work. Yeah, it's great for coding. I love, you know, I kind of go back and forth between ClaudeCode and Code and codex.
Starting point is 00:23:17 And I always use both on any project and sometimes anti-ex. gravity as well from Google. But codex for knowledge work is absolutely amazing. So the super app concept is essentially they're bringing chat GPT codecs and Atlas their browser all in one. And I think
Starting point is 00:23:34 what this is setting up for is just straight dollar dollar bills y'all because when you bring all of that context right and this new library feature, right? I said it's a little feature that they introduce and I saw that and I'm like this is actually big right. It's a
Starting point is 00:23:50 essentially a central location for any file that you've ever uploaded. But think of that across browser, across codex, and across ChadGBT. So I think, you know, ChatGPT and, or sorry, OpenAI is starting to lay the foundations for the future of this super app. But I think ultimately what that leads to is the ability for them to make more money sooner and faster because, well, they'll be able to sell a lot of ads when they have all of that information on people. So aside, getting back to the money, right, and what their CFO, Sarah Friar said about essentially having to be lean before they go public. Open AI, we've also saw reports this week that they're offering private equity firms
Starting point is 00:24:33 guaranteed 17.5 percentage point returns to deploy AI across their portfolio companies. So they're essentially trying to buy PE lock-in before they even go public. So that's what I say. I think this is the. The chaos before the calm, before the storm. Here's what I mean by this. It's been one of the most chaotic weeks ever for Open AI or any tech company, probably. In recent memory, since I've been doing this, at least with the number of just the sheer
Starting point is 00:25:04 quantity of head turning moves multiple a day that you're like, what the heck is going on, right? That's the chaos. And I think that the brass at OpenAI want the call. They need to get to the calm before the storm, which is the IPO, right? Because before any company goes IPO, that's when all the dirt comes out. That's when everyone comes out with their, you know, campaigns against them. So, you know, companies know, it gets messy right before you go public. It's a huge deal about, you know, what that IPO hits at in the initial reception.
Starting point is 00:25:42 So they want to have as much control on the company in its direction as possible from a comms, perspective from an identity, a brand image, everything. They want that all under wraps. So this is the chaos. They want to get to the calm. And then there will be the actual storm of going public. So to get there, though, they have to deliver. You know, we don't know if they're going to go public in the second half, you know,
Starting point is 00:26:11 third quarter. That's what I've seen from a lot of reporting. But they may not even have the compute that they need. Even after they shut down compute heavy projects. like SORA. So, you know, Sam Altman did step down from the Helion Energy Board this way to clear the way for Open AI to potentially enter into a massive fusion power deal. And well, maybe that's tied to the other piece of recent news that Open AI and Oracle dropped a massive Texas data center extension and Microsoft stepped into rent it instead. So it is interesting that Microsoft
Starting point is 00:26:47 had plans, right? This is this concept of well, they need more and more compute. And then they had this Stargate extension lined up for more compute. And they had to, well, say no to that extension. And then Microsoft came in. So a lot of people are saying, well, if they couldn't complete that, why? And maybe this fusion power deal has something to do with it. Or maybe it's just about the, you know, access to capital in what waves, right?
Starting point is 00:27:14 Obviously, you know, with the different hardware plays, right? we've seen Open AI is potentially entering into some custom silicon deals, you know, consumer hardware, a lot of different things they still have going on even after killing some of these side quests. But I think here it's what this means for the larger AI race. The best model doesn't really matter as much anymore, right? We talked about this on our start here series a couple of weeks ago. I think the harness and the tool use matters more, at least versus just an actual
Starting point is 00:27:48 next best model, right? We saw reports on this new model codenamed spud that OpenAI is working on, but it's now about who has the compute, right? Who is the electricity? Who is the chips? Who is the data centers to run it? And I think that's what we are starting to see here, because a lot of the moves that Open AI is making seemingly is to reduce the compute that they're spending on consumers and on projects that are maybe not in their long-term vision to profitability or in their long-term vision to an IPO. So it seems like if it's not something that's going to immediately make them, you know, riches and the niches of the enterprise or something that's going to set them up for an IPO, they're cutting it off, especially
Starting point is 00:28:36 if it's compute heavy because they need to allocate those resources for other reasons. And then, yeah, the whole Microsoft problem. Can't ignore that, right? That's another kind of big checkmark that Open AI hopes to check off in the chaos before the call and before the storm. So Microsoft is reportedly considering suing OpenAI over the $50 billion Amazon Cloud deal that OpenAI and Amazon entered into. And Microsoft is saying that it violates their Azure exclusivity. So essentially, OpenAI and Amazon reportedly built a technical workaround to the Microsoft and Open AI deal.
Starting point is 00:29:14 And Microsoft says it kind of violates the spirit of the contract. Meanwhile, OpenAI's own pre-IPO investor docs name Microsoft as a potential business risk. So, yeah, the partner that built Open AI up is now maybe the partner that could potentially hold them back a little bit as they start to, you know, kind of lean in, get leaner and lean in to longer term profitability. So that one is going to be a relationship that is especially important to watch. And not just for us AI dorks to have something to talk about at the water cooler or the next conference. That's not what I'm talking about. This is going to impact how you work because you probably don't know this. But even if you, the majority of people out there are using Microsoft 365 co-pilot, right?
Starting point is 00:30:12 you don't know it but there's Open AI models have historically run copilot top to bottom over the past couple of quarters Microsoft especially inside of their apps inside of their 365 apps
Starting point is 00:30:28 like Word, PowerPoint, Excel, etc. have started to put in Claude. So the very models that are powering your day-to-day work might get swapped out. We don't know. This could potentially lead to a major rift between OpenAI and Microsoft.
Starting point is 00:30:49 So here is the new playbook for OpenAI as we close up this episode. Kill the side quests, consolidate into one super app that's Chad Chipit, Codex, and Atlas, and then raise the money. Lock in the enterprise, monetize the audience, secure the infrastructure, and prepare for IPO. It's a very simple playbook. And I think the other big thing that's going to be happening in the interim, them, right? Aside from killing all the side quests, getting the super app, you know, going after high value sectors is their recent hire. So Dave Duggan was hired from meta to run chat GPT ads.
Starting point is 00:31:29 So right now OpenAI has 900 million weekly active users. And their first kind of ad foray for their first advertisers in their beta round had to come in with a 200k minimum ad buy in some of the early story so far said that, well, maybe wasn't as good as they thought, right? There wasn't exactly a lot of reporting, a lot of attribution that advertisers spending a minimum 200K might usually want. That's something to keep an eye on because I think OpenAI has had a couple of recent key hires from meta specifically to work on the ad side of the company. So as they rotate and migrate into the super app, yes.
Starting point is 00:32:14 it is to make it easier for consumers, but it's to, right, 90% of people are on the free plan. So that's, I don't know, I'm not great at math, but that's more than 800 million free users that if they're using this super app, I know not all of them are going to use it because, you know, a lot of people are just going to use the web. But still, just the amount of advertising, having all of that information in there, right? You share keywords with Google. You show your deepest darkest secrets with chat GPs and chatbots of the worlds. Right.
Starting point is 00:32:51 So not only that, but two other key factors here looking at Open AI's new playbook, but the doubling headcount by the end of the year, wild. And then literally planting a nearly 500,000 square foot new office. in Google's backyard. Why would you do that? Well, so you can more easily, you know, the closer you are to your enemy, the more fun you can have. So that'll be another storyline to continue to watch.
Starting point is 00:33:29 But moral of the story here, Open AI is not going away, right? Even with their crazy chaotic week, shutting down, SORA, some of their other side projects, dying, all they're doing, They're getting leaner, more focus, not weaker. They're getting stronger.
Starting point is 00:33:48 And yeah, it's the chaos, but I can't wait after the calm to see the storm. All right. And here's why this matters for you. Well, if you use chat chit, expect a more focus, more capable of product, but also expect ads if you are on a free or the chatypT paid go plan and probably more commercial features. Right. So even if you are on a paid plan in the same way that Anthropic, you know, allows you to buy credits.
Starting point is 00:34:16 That's something that Chachyipati has on their business plans. I might expect that to come down to the normal consumer plans as well. If you're a business leader, the platform wars just entered the enterprise lock-in phase. You know, so you do have to think about picking your AI ecosystem now. And if you are in AI skeptic, strategic retreat is not collapsed. What open AI is doing right now, this doesn't mean they're, my gosh, there's actually smart people out there. They're like, oh, you know, SORA's dead. This is the latest sign. Open AI is going bankrupt. I called it first, right? No. It's not how business works. Right. This is a company that by today's
Starting point is 00:34:58 measures is technically the 11th most value, right? Once they close out this funding round, their post money valuation would put them at the 11th most valuable company in the U.S. by market cap. Those companies don't just get that valuation or that market cap by sheer luck. No, they do it because they have a tremendous business model that is a generational company. And the new model, don't forget about that. Brand new, codamed spud. It is ready. And apparently it is going to really impact the economy, right, according to the brass there at Open AI. So the money is raised, the workforce, is expanding. Now they have to ship and we just get to watch and well, maybe enjoy more chaos. All right. That's it for today's show. Taking a look and a quick-ish recap. One, one of the wildest
Starting point is 00:35:56 weeks I've ever seen for a single AI company since I've been doing this for daily for three years. So like I said, even if you're not an avid chat chad chavit user, even if you're just a novice, whatever happens as the result of this week, I think has long. standing impacts across not just the AI industry, but the tech sector as a whole. So if you learn anything, if this was helpful, right, our team puts a lot of effort into keeping you up to date, trying to give you, and maybe sometimes I put my opinion in there, but I try to keep this unbiased and just give you the facts, some of my opinion, and lets you decide.
Starting point is 00:36:34 So if that's helpful, if you're listening on the podcast, please click that subscribe button and follow the Everyday AI show, whether you're listening on Spotify or Apple Podcast. podcasts, then if you're on the live stream, repost this, tell someone who needs to know this, what's going on. You can be the smartest person in AI at your company when you go to our website, your everyday AI.com. Go sign up for the free daily newsletter. Thanks for tuning in.
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