Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Well, we started today
Speaker 1: with a big pop and shares of AMD, this after
Speaker 1: it inked the landmark deal with open Ai to build
Speaker 1: out infrastructure, giving the chip maker a chance to challenge
Speaker 1: in video in the computing industry. Now, this comes on
Speaker 1: the same day as open AI's annual Developers Day of
Speaker 1: Developers Day, where we've seen a lot of stocks including Thigma, HubSpot, Cisco,
Speaker 1: Mattel just to name a few, also moving significantly on
Speaker 1: based on some of the comments coming out of that conference.
Speaker 1: Joining us right now is Ed Ludlow. He is at
Speaker 1: that conference and he's joined right now by the CEO
Speaker 1: of open Ai, Brad Lightcap.
Speaker 2: Ed. Yeah, and the headline is the ability to use
Speaker 2: third party apps within chat GPT, and the profound impact
Speaker 2: on the market was simply those name checked saw their
Speaker 2: stocks move in a significant way. Delighted to speak once
Speaker 2: again with Brad Lightcap that it's just simple as that,
Speaker 2: as that really the ability to be within chat GPT
Speaker 2: and access Spotify or Figma as two examples. When you
Speaker 2: were discussing the idea of that and an API access
Speaker 2: with those partners, was it a tough negotiation to get
Speaker 2: them on board with the idea.
Speaker 3: No, I mean that we've seen enthusiasm for this from
Speaker 3: the beginning. You remember, way back when we were lost
Speaker 3: something called plugins.
Speaker 4: Back in the early days of chat ept.
Speaker 3: This was one of our first attempts to start to
Speaker 3: build an ecosystem around chat GPT so that chat ept
Speaker 3: can start to engage with and interact with the applications
Speaker 3: that are important to you in your personal life and
Speaker 3: at work. And now we really have a.
Speaker 4: Much richer surface through MCP.
Speaker 3: And other protocols to be able to bring applications into
Speaker 3: chat ept and for really to allow you to engage
Speaker 3: with chat GPT in the kind of work around work right,
Speaker 3: it's the contextual aspect of I'm doing X, or I
Speaker 3: need why I'm on a road trip and I want
Speaker 3: to know what playlist would go well with this in
Speaker 3: the context of my broader trip planning. That allows you
Speaker 3: now to kind of use chat GPT to solve that
Speaker 3: high level task and then also integrate apps contextually to
Speaker 3: solve those specific problems.
Speaker 2: And we're in a place where chat GPT has become
Speaker 2: more of an operating system. Whether that was your ambition
Speaker 2: or not, is that where you want to take it
Speaker 2: to be an OS and a developer driven platform. It's
Speaker 2: almost like an app store, you know, on paper based
Speaker 2: on what you announced this afternoon.
Speaker 3: Well, we've always thought of chatgybt as like a super assistant.
Speaker 4: We never set out to build a chatbot.
Speaker 3: We always wanted to build something that was really true
Speaker 3: to you and what your preferences.
Speaker 4: Are, what your goals are. They could actually help you
Speaker 4: achieve more.
Speaker 3: And so I think part of that is CHATGIBD having
Speaker 3: an appreciation and understanding of the applications in your life
Speaker 3: that are important, and I think enabling that kind of
Speaker 3: connectivity and interoperability makes Chattibt Richard also enables a lot
Speaker 3: of pass through for people to be able to engage
Speaker 3: with apps they love it as well as new apps.
Speaker 5: The pass through bit is interesting.
Speaker 2: Were their concerns with some of those technology companies you're
Speaker 2: partnering with that.
Speaker 5: It would take traff they away from there?
Speaker 3: In domains now, I think mostly people are really focused
Speaker 3: on building into new interfaces.
Speaker 2: Right.
Speaker 3: This is just like mobile in some sense, where you
Speaker 3: have a new interface, you have a new form factor.
Speaker 3: People are going to want to use mobile form factors
Speaker 3: on the go and apps like.
Speaker 4: Spotify in some ways exist.
Speaker 3: Almost because they really nail mobile and so we think,
Speaker 3: actually there's an opportunity for builders to create entirely new
Speaker 3: applications that are even native to chat GPT, and of
Speaker 3: course for services you love to be able to benefit
Speaker 3: there too.
Speaker 2: Is there a revenue sharing agreement with those third parties
Speaker 2: whose apps are accessible to we chat GPT.
Speaker 3: So we're going to figure out the economics of this
Speaker 3: over time. You know, we're brand new here. Plugins was
Speaker 3: the first version of this and that was even an experiment,
Speaker 3: and so like everything at Opening Eye, we take this
Speaker 3: very experimental mindset to making.
Speaker 4: Sure we get it right.
Speaker 3: But the idea is we do we do want to
Speaker 3: build something that's useful for developers, and of course there's
Speaker 3: going to be you know, have to be some exchange
Speaker 3: in there of economics and value, and we'll have to
Speaker 3: figure out to get that right.
Speaker 2: You have hit eight hundred million active weekly users. You
Speaker 2: announced on stage. Actually Greg Brockman told me that at
Speaker 2: eight o'clock this morning, and maybe we missed it, but
Speaker 2: it's a significant milestone. All the time, I'm asked by
Speaker 2: all kinds of people, do we have any sense of
Speaker 2: within that eight hundred million, how many are base level
Speaker 2: free users and how many are premium level paid subscribers.
Speaker 3: Yeah, we have a very healthy, you know, funnel of
Speaker 3: people that choose to pay for chatchubut.
Speaker 4: You know, it's surpassed for my expectations.
Speaker 3: Frankly, were people have this kind of conception that consumers
Speaker 3: tend to not pay for software and you know, similar
Speaker 3: even to what I was saying before around how do
Speaker 3: you co develop the product alongside the business model. Chatchbt
Speaker 3: is a great example of that, where the subscription model
Speaker 3: I think has been really a testament to how valuable
Speaker 3: it is for more users than I think we expected
Speaker 3: to be willing to pay for it. So we don't,
Speaker 3: I think, just close the exact number, but it's a
Speaker 3: healthy amount and more every day.
Speaker 2: Open AI in the beginning went off the consumer for
Speaker 2: uses aggressively. You are now very focused on the enterprise business.
Speaker 2: What is the strategy for that and how do you
Speaker 2: prioritize your enterprise business?
Speaker 4: Yeah, I'm glad you asked about that.
Speaker 3: So really today's announcements actually I think target what are
Speaker 3: an important set of use cases for the enterprise things
Speaker 3: we've been hearing enterprises ask us about now for some time,
Speaker 3: so specifically, one is we now have an ability for
Speaker 3: enterprises to build agents in a much more visual, much
Speaker 3: more intuitive way. You've heard us say twenty twenty five
Speaker 3: has been the year of agents. We think that's true.
Speaker 3: Codex has been a great example for us of that.
Speaker 3: Our coding agent now available through an API.
Speaker 5: Also, the lead time to make software is a lot shorter.
Speaker 4: It's gotten a lot shorter.
Speaker 3: I think you saw today we demoed live demo, I
Speaker 3: think three or four different things that we've built in
Speaker 3: real time.
Speaker 4: We expect that to continue to be to the trend.
Speaker 3: Things like Agent Builder allow enterprises to be able to
Speaker 3: build agentic experiences, powerful identic experiences on the go, iteratively
Speaker 3: and connected into the tools and sources of information that
Speaker 3: matter for the business.
Speaker 2: The data point that jumps out me is your API
Speaker 2: is handling more than six billion tokens per minute, and
Speaker 2: that helps explain why the AMD deal, you know, which
Speaker 2: is focused on inference. You are involved in all of
Speaker 2: these domains of the company. I've already asked Greg, but
Speaker 2: I've got to ask you, how are you going to
Speaker 2: finance yet another infrastructure project? Like is there going to
Speaker 2: be some debt here specific for the AMD capacity, and
Speaker 2: how do you move quickly to get it online?
Speaker 3: Yeah, well, the high level thing is we are tremendously
Speaker 3: compute constrained. It feels like we're in this kind of
Speaker 3: recurring theme of being compute constrained. And I think the
Speaker 3: reason for that is the answer to the question you ask,
Speaker 3: which is demand. Right, we see there are multiples of
Speaker 3: demand that are lateent and untapped from what we have today.
Speaker 3: And even today, obviously by any standard, demand in revenue
Speaker 3: growth has been torrid in its pace, and so really
Speaker 3: we have to invest ahead of that.
Speaker 4: And I think that's going to be the.
Speaker 3: Ray limitter for us to be able to go capture demand,
Speaker 3: whether it's consumer or enterprise, and for us to be
Speaker 3: able to build new models, paralyze more experiences, more product experiences,
Speaker 3: and then enable users specifically to be able to use those.
Speaker 4: Products more actively in their daily life at work and
Speaker 4: at home.
Speaker 3: And so, you know, even things like Sora, the app
Speaker 3: we just launched, we wish we could invite more people
Speaker 3: onto it now, but we just need more compute. So
Speaker 3: the AMD deal we're excited about being you know, directionally
Speaker 3: a way for us.
Speaker 5: To do that.
Speaker 2: I've got to ask about the report that open AI
Speaker 2: closed secondary or the ability for employees to sell shares
Speaker 2: at a five hundred billion dollar valuation. I already asked
Speaker 2: you this question, but what is the metric we're supposed
Speaker 2: to judge your success by the five hundred billion dollar valuation?
Speaker 2: The six billion tokens per minute? To you, Frad, what
Speaker 2: is it?
Speaker 3: For me? It's it's actually kind of a metric that
Speaker 3: we we talked about is tokens. It's you mentioned six
Speaker 3: billion tokens per minute on our That is the purest
Speaker 3: for me.
Speaker 4: The kind of essence of utility is that consumption metric.
Speaker 3: And so we've actively tracked that metric to see how
Speaker 3: people's consumption of AI is growing over time. And you
Speaker 3: see this happen in amazing ways. So things like Codex,
Speaker 3: for example, we've seen grow ten x since August purely
Speaker 3: on consumption of tokens around coding, and you start to
Speaker 3: see that same pattern emerge across multiple lanes of use
Speaker 3: and across multiple areas of work. And that's the metric
Speaker 3: I look at because if that number is going up,
Speaker 3: it means people are using us for more things, and
Speaker 3: that's the ultimate Goal.
Speaker 5: Brad Lightcap is open ai Coo.
Speaker 2: There has been a fire hose of headlines and it
Speaker 2: is moved markets all day long.