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A.I. War - #4: Big Tech

We have covered how powerful A.I. is but who owns this technology?

I asked ChatGPT.

Who owns ChatGPT?
Who owns ChatGPT?

Elon Musk and Sam Altman founded a nonprofit artificial intelligence organization called OpenAI back in 2015. OpenAI was created as a philanthropic goal for humanity by a non-profit corporation, but it was unable to bear the costs of developers' salaries and equipment. It costs a lot of money to develop cutting-edge technology. OpenAI later changed its structure to a hybrid organization (a for-profit company with a non-profit "OpenAI LP" arm) in late 2019. OpenAI received a $1 billion investment from Microsoft. Through this investment, Microsoft was able to acquire a license from OpenAI, and through this investment, Microsoft and OpenAI became close partners at a fast pace.

OpenAI developed its A.I. model GPT based on super-large data. When you hear about the training of such a massive amount of data, you would think that it requires a huge computer and a dinosaur-sized cloud. In May 2020, Microsoft announced that it would create a supercomputer specifically built for training OpenAI's giant A.I. model GPT-3, and use its own cloud service, Azure. But nothing in this world is free, so the next step is obvious. OpenAI has granted Microsoft an exclusive license for GPT-3.

Currently Google is dominating search engine market share. Microsoft’s Bing doesn’t even come close. Google is an aggregator of relevant web sites. It searches the internet for relevant sites based on your search terms. You still need to visit these sites, aggregate and analyze information itself.

ChatGPT on the other hand does everything for you. You basically ask whatever you need, and it spits the answer back to you. You don’t need to open any links, you don’t need to visit any web sites, you don’t need to collect any information. It is all done for you. Ultimately, people choose systems that allow them to find information more conveniently and quickly, and methods that are cumbersome will eventually be discarded. Google primarily generates ad revenue by inducing people to click on links that include advertisements. If ChatGPT is proved to be a better alternative that skips the search process, it could threaten Google's ad revenue. According to Bloomberg, this revenue from search ads amounts to around $280 billion, which is 81% of Google's Alphabet's revenue. In other words, the majority of Google's revenue comes from its search engine links. 

If super-large conversational A.I. is activated in 2-3 years, how will they make money? Now, let's talk about how big tech companies will utilize this AI model. Imagine a world where AI serves as your counselor, therapist, or consultant. You are suffering from depression and you decided to talk to ChatGPT. ChatGPT will ask you a series of questions to diagnose your problems. Then it suggests a specific exercise equipment or introduces related books as a solution. If it were possible to accurately identify people's preferences and needs, it would be game-changing. It would allow for highly targeted and personalized advertising, which would likely lead to increased engagement and conversions. 

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