OpenAI's Not So Open AI

Photo Credits: MicrosoftSam Altman, CEO of OpenAI (left), and Microsoft CEO Satya Nadella
EDITORIAL | 2023/05/29 10:30 PM | Media | Ishan Vemireddy

OpenAI was founded in 2015 as an open source nonprofit organization with Sam Altman and Elon Musk serving as the initial board members. Their goal was simple - pioneer and be at the frontier of artificial intelligence technology. And credit where credit is due, they truly have revolutionized the artificial intelligence market. Project DALLE, an AI powered text to image generation tool and ChatGPT, a natural human text generator, were open source projects from novice developers to multinational corporations have added to and benefited from. 


That has long since changed. 


Microsoft's recent investment of $10 billion in OpenAI marked the beginning of a multi-year partnership between the two companies. While the exact equity distribution remains undisclosed, estimations suggest that Microsoft now holds a substantial stake in OpenAI, ranging anywhere from around 30% to potentially 50%. All that is known for sure is that Microsoft has a substantial claim in OpenAI and hence influences the decisions and trajectory of the company.


Tech giants acquiring startups to leverage their innovations is a undoubtedly a common practice in the industry. However, this particular instance has raised concerns. Following the investment, radical changes were implemented within OpenAI. 


ChatGPT’s API, previously a freely accessible service, transitioned into a pay-to-use model. Consequently, the open-source roots of OpenAI came to an end. Furthermore, all further models (starting with Chat-GPT 4) became pay-to-use.

The shift from open source to closed source has significant implications. The vibrant developer community that thrived on contributing to and enhancing OpenAI's technologies is now constrained by paywalls and limited access. The collaborative environment that fostered creativity and rapid advancements in AI has been compromised. The barriers to entry have increased, making it harder for developers, particularly those with limited resources, to leverage OpenAI's capabilities and contribute to its progress.


The transformation also raises concerns about the future direction of OpenAI and AI technology in general. The influence of a tech giant like Microsoft, with its own corporate objectives and priorities, may lead to a shift in OpenAI's research focus and overall mission. While partnerships and investments can bring valuable resources, the risk of losing sight of the original nonprofit vision and the potential for profit-driven decisions loom large.


The ramifications extend beyond developers and the AI community. The broader societal implications of AI technology are vast, encompassing issues of ethics, transparency, and bias. The open-source nature of OpenAI had fostered discussions and collaborations that sought to address these challenges collectively. The transition to a closed-source model limits the opportunity for public scrutiny and input, potentially hindering progress in these critical areas.