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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Open AI's top of mind across the world of technology.

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Speaker 2: That includes, for Elon Musk, who posted on x overnight

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Speaker 2: that his EV company Tesla, is having to boost compensation

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Speaker 2: to ward off approaches for his AI talent. Those approaches,

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Speaker 2: claims mask include open ai. Ethan Knight, a member of

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Speaker 2: Tesla's team working on computer vision for FSD, was approached

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Speaker 2: by open ai, so Musk moved him to his own

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Speaker 2: AI company, XAI. Let's get to the open ai side

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Speaker 2: of the story. Let's talk about talent. Let's talk about

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Speaker 2: what's happening in the world of artificial intelligence. Brad lightcap

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Speaker 2: open ai coo joins us here in New York City.

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Speaker 2: There's no accusation that anything wrong was done, but it

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Speaker 2: highlights an interesting point. Right now, there is a lot

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Speaker 2: being done on the training of prior generation models, future

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Speaker 2: generation models. There is a finite amount of talent. Give

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Speaker 2: the open ai side of this equation, how much of

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Speaker 2: a premium are you having to pay out? I don't

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Speaker 2: know if it's salary or stock or engineering freedom to

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Speaker 2: get the top names.

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Speaker 1: Well, thank you Ed Caroline for having me. It's great

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Speaker 1: to be with you. You know, look, this is a

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Speaker 1: competitive market.

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Speaker 2: For sure.

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Speaker 1: It's an amazing place that we're at because there's a

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Speaker 1: few number of people that can really make such a

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Speaker 1: dramatic impact in this field. But we try and pull

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Speaker 1: people into our mission, and I think that's historically what's

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Speaker 1: been our strength is people want to build in the

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Speaker 1: place where we're pushing the frontier, the furthest and also

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Speaker 1: where we really think about the impact of the technology

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Speaker 1: both on a societal level, and then also want to

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Speaker 1: apply at an industry level.

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Speaker 2: How big is open AI, I now how many employees

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Speaker 2: and where are they?

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Speaker 1: We're about twelve hundred people. Twelve hundred, yes, mostly in

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Speaker 1: San Francisco, but also in London and Dublin and increasingly

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Speaker 1: other places in the world.

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Speaker 2: Increasingly out the places in the world. The reporting was

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Speaker 2: that Japan is the next frontier for you. What's the

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Speaker 2: strategy there and where you choose I don't know whether

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Speaker 2: you call it opening a new market, the way you

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Speaker 2: choose to have operations.

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Speaker 1: Well, we're very fortunate we have a very global base

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Speaker 1: of demand, so we want to show up where our

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Speaker 1: customers are. We think this is going to be a

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Speaker 1: global transformation. We feel a lot of pull from places

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Speaker 1: like Japan and Asia broadly, and so we'll show up

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Speaker 1: where we feel like we need to be.

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Speaker 3: And let's talk about where show up from an industry perspective.

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Speaker 3: You're here in New York talking to partners. We understand

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Speaker 3: Sam and the teams have been in Hollywood discussing how

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Speaker 3: Sourra can be used, but ultimately how you can have

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Speaker 3: a working relationship with companies and industries that think they're

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Speaker 3: going to be upended. Told us about how those conversations going,

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Speaker 3: for example, with Hollywood and publications.

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Speaker 1: Yeah, you know, we take a very unique perspective here.

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Speaker 1: We really model open AI as a partnership's company, and

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Speaker 1: we think this transformation is going to be very broad based.

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Speaker 1: And so we're one company. We can't do everything ourselves.

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Speaker 1: Being able to find ways to partner with industry, with countries,

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Speaker 1: with specific companies, that's really important to our mission and

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Speaker 1: the way that we think about bringing technology to the world.

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Speaker 1: By way of recent example, we work really closely actually

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Speaker 1: with the publishing industry right now on ways that we

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Speaker 1: can deploy AI into publishing to make the quality of

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Speaker 1: journalism better, to make the quality of reader experiences better.

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Speaker 1: We've heard nothing but really actually a lot of enthusiasm

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Speaker 1: from that industry, and so we're always looking at ways

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Speaker 1: that we can partner with industry.

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Speaker 2: I expect a lot.

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Speaker 1: More from us in the future on this front, and

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Speaker 1: sort of a great example of where we really are

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Speaker 1: excited about the impact that we can.

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Speaker 3: Make a media It's interesting that media companies over in Europe,

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Speaker 3: for example, seem to have got with that quite quickly.

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Speaker 3: Ashal Spring are a key deal that you sort of

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Speaker 3: birthed early days and actual Springer therefore scenes for businesses

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Speaker 3: side and perhaps a little bit more blue links within

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Speaker 3: chat GPT. New York Times ain't on that discussion point

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Speaker 3: right now. How is that legal fight and indeed behind

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Speaker 3: the scenes discussion going with those sorts of companies.

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Speaker 1: Well, I can't comment on the New York Times case

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Speaker 1: specifically other than to say we think it's without merit,

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Speaker 1: But the overwhelming majority of what we hear from the

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Speaker 1: publishing industry is actually quite positive. There's a high level

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Speaker 1: of excitement everywhere about what these tools can do, both

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Speaker 1: to unlock better journalism, to give readers more access to information,

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Speaker 1: to enhance the way that people engage with content. So

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Speaker 1: the way that we actually think about even the fundamental

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Speaker 1: business of information engagement and consumption. These things are all

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Speaker 1: really possible now with language models and increasingly with multimodel

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Speaker 1: models too, So we think we're just starting to scratch

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Speaker 1: the surface on that opportunity. We've got a lot more

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Speaker 1: to share there soon. But stay tuned.

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Speaker 3: You're being positive, being optimistic, of course you are. What's

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Speaker 3: interesting is I come away from meetings where Hollywood is

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Speaker 3: deeply anxious. People in my industry are deeply anxious. Goodness,

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Speaker 3: everyone where a job is trying to work out how

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Speaker 3: they adopt AI. And also there's this question that is

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Speaker 3: ongoing of open versus closed. You're going we're another legal

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Speaker 3: fight at the moment in Loam Muscus dragged you into

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Speaker 3: it and wants you to rename yourself. Where do you

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Speaker 3: sit on the closed verst to open? How much more

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Speaker 3: open do you have to become?

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Speaker 2: Yeah?

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Speaker 1: Well, look, I think we really focus just on where

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Speaker 1: we can deploy the technology and what's the best way

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Speaker 1: to do that. And at the end of the day,

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Speaker 1: we're going to focus on where our customers are and

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Speaker 1: the way that they want to deploy it. We work

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Speaker 1: with thousands of enterprises across the world. We spend a

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Speaker 1: lot of time working with those enterprises on ways that

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Speaker 1: we can configure the technology specific to their use case,

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Speaker 1: specific to their stack, and we think that the easiest

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Speaker 1: way to do that is the way that we serve it.

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Speaker 1: But that's not to say that, you know, we wouldn't

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Speaker 1: look at other ways in the future. We really ultimately

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Speaker 1: want to be where we think the best place to

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Speaker 1: deploy the technology is going to be.

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Speaker 2: Problemomberg Television and radio audience worldwide. We're in New York

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Speaker 2: City speaking to open Ai COO Brad light Cap. I

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Speaker 2: want to learn more about where open ai sits in

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Speaker 2: its growth. It's day to day operations. You know, you

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Speaker 2: just said thousands of enterprises. We came to know you

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Speaker 2: because of the explosive response to chat GPT, and that

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Speaker 2: was principally in the context of the consumer facing chatbot.

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Speaker 2: But it sounds very much like growth now is focused

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Speaker 2: on that enterprise arrangement licensing of technology. Can you give

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Speaker 2: me proportions the rate of growth for those two pillars.

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Speaker 1: Well, we've seen tremendous growth in the enterprise. Twenty four

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Speaker 1: is going to be the year of adoption for AI.

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Speaker 1: In the enterprise. We felt really like twenty three was

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Speaker 1: the year that people just started to wrap their head

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Speaker 1: around what was possible with AI in the enterprise. But

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Speaker 1: increasingly the market is pulling us toward real applications that

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Speaker 1: are delivering real business results and a very broad focus

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Speaker 1: on AI enablement. So how do we think about bringing

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Speaker 1: AI both to our operations but also to our workforces,

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Speaker 1: and then also to new product experiences that we can

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Speaker 1: deliver to customers. And we work with plenty of companies

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Speaker 1: that are doing all three of those things at the

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Speaker 1: same time. We think that's very possible and it's having

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Speaker 1: really dramatic bottom line impact today. This is what we

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Speaker 1: think the pull is going to be, and we're ready

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Speaker 1: to support.

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Speaker 2: Brad. You're the COO, so I'm assuming you're responsible for

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Speaker 2: also some of the purse strings involved in open AIS finances.

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Speaker 2: Compute must be a really considerable cost right now, and

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Speaker 2: with that the energy consideration as well.

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Speaker 1: Are you.

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Speaker 2: Making enough revenue from this enterprise business to keep the

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Speaker 2: lights on when you factor in the compute costs involved?

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Speaker 1: We are yes. We think that we have well, first

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Speaker 1: of all, a very diversified business and so we serve

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Speaker 1: one hundreds of millions of users with our chatchapet product,

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Speaker 1: and many of those users are paying users. Of course,

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Speaker 1: we serve now over six hundred thousand individual users in

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Speaker 1: the enterprise with Chatchaputy Enterprise, and so we're just seeing

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Speaker 1: tremendous momentum. We're very early innings on this, and so

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Speaker 1: we look at it as hey, this is the start

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Speaker 1: of something, and ultimately our priority is just to be

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Speaker 1: able to deliver the best and telligence, whether it's in

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Speaker 1: the enterprise or to individuals that's the most useful, that

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Speaker 1: drives the biggest business impact.

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Speaker 2: Cara, I'm thinking back to the conversation we had the

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Speaker 2: other day with Daniel ama Day from Anthropic, and what

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Speaker 2: she explained Brad was the relationship with AWS and Bedrock,

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Speaker 2: they're getting a lot of business through that. You have

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Speaker 2: a quite similar and actually a pre existing situation with

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Speaker 2: Microsoft and Azure. You are able to explain how much

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Speaker 2: new business comes through that conduit of the Microsoft relationship

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Speaker 2: and what we're probably existing asual enterprise customers.

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Speaker 1: We're really fortunate to have Microsoft as a partner. They've

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Speaker 1: been an amazing partner with us for a long time.

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Speaker 1: We've increasingly looked at the world as ways that we

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Speaker 1: can bring open an eye technology to life together. We're

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Speaker 1: very fortunate that they're offering our models through their Azure

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Speaker 1: Opening Eye service. But we have an independent business, so

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Speaker 1: we serve customers independently of Microsoft, and it's one.

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Speaker 2: Bigger than the Microsoft Avenue.

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Speaker 1: Yeah, look, you know it's fluid between the two, but

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Speaker 1: we really are focused on what's best for the companies

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Speaker 1: we work with, and we're very fortunate to be able

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Speaker 1: to diversify the surfaces in which we offer our products.

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Speaker 1: We think the demand for this technology is massive, and

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Speaker 1: so being a smaller company obviously having a partner that

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Speaker 1: can help bring the technology to scale is really really

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Speaker 1: advantageous for us, and we're excited to support them in

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Speaker 1: the future.

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Speaker 3: It's an extraordinary, very novel kind of partnership, and in fact,

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Speaker 3: the whole of AI is birthing these kind of frenemy relationships.

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Speaker 3: I just think of also Aquia Hiers deals that seem

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Speaker 3: to be going now. Microsoft has just seemingly aquihied the

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Speaker 3: whole of inflection. What did you make of that particular move,

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Speaker 3: particularly when suddenly you've got what the co founder of

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Speaker 3: DeepMind coming in to be the head of Consumer AI

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Speaker 3: at Microsoft, and ultimately you put out a response to

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Speaker 3: that being like, congratulations, But how did that make you

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Speaker 3: feel as the previous partner of choice for Microsoft.

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Speaker 1: Well, we're excited for them. We congratulate with the STAFFA

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Speaker 1: and Karen and the whole team, and we work very

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Speaker 1: closely with Microsoft, and so we think that's going to

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Speaker 1: be a major advantage for a partnership as well. We're

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Speaker 1: focused on what we can control on the open eye side,

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Speaker 1: which for us right now is really thinking about the

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Speaker 1: next wave of the technology and thinking about ways that

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Speaker 1: that wave is going to start to enable businesses. And

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Speaker 1: the more we can think about that problem together, the

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Speaker 1: better we'll all be.

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Speaker 2: A lot of CEOs I speak to some of them,

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Speaker 2: are your customers say their technology agnostic right now? In

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Speaker 2: other words, they might use GPT or another foundation model,

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Speaker 2: they might also be building their own in parallel. And

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Speaker 2: when we told our audience who are coming on the show,

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Speaker 2: a lot of people wanted to get your thoughts on

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Speaker 2: the Palenteer relationship. It's an interesting case study. They seem

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Speaker 2: to be one of the beneficiaries of the enterprise investment

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Speaker 2: in AI, or at least the data analytics side. What's

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Speaker 2: it like working with alex Carry.

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Speaker 1: You know, we actually work with a bunch of partners

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Speaker 1: that help us bring the technology to life, and there's

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Speaker 1: so many ways to deploy the technology and the enterprise.

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Speaker 1: That's what's kind of amazing about this technology is it's

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Speaker 1: not just one function in the enterprise or one part

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Speaker 1: of the enterprise stack. It's so diverse and it's so

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Speaker 1: broad based. And so we work with with with with

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Speaker 1: many partners to bring that to life, and we'll continue

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Speaker 1: to look for partners to work with to help us

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Speaker 1: do that. But yeah, no, we you know, look, we're

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Speaker 1: we're excited with with with Wave Volunteers has been enabling

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Speaker 1: their customers on top of our technology. Uh, and we'll

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Speaker 1: continue to support them going forward.

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Speaker 2: Brad, every day it crosses my desk, you know that.

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Speaker 2: I've done quite a lot of reporlicing on Sam's chip

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Speaker 2: ambitions as well. There's some relationship going on between the

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Speaker 2: UAE and open AI fundraising or technology partnerships. Can you

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Speaker 2: clarify what's going on there and why you need to

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Speaker 2: raise funds from somewhere like that?

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Speaker 1: Yeah, well, look, I won't comment specifically on that. We broadly, though,

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Speaker 1: believe that there's just not enough total supply in the

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Speaker 1: world and.

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Speaker 2: That of AI at Center RASS specifically.

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Speaker 1: AI accelerators, and broadly that the supply chain will need

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Speaker 1: to adapt to what we think is going to be

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Speaker 1: this highly inflected and nearly exponential demand in the next

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Speaker 1: ten years. And so we spend a lot of time

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Speaker 1: thinking about ways that we can make sure that that

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Speaker 1: demand is met. Part of it is just being able

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Speaker 1: to bring our models to bear, but upstream of that

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Speaker 1: is obviously making sure that the actual underlying hardware and

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Speaker 1: infrastructure exists to be able to build the systems that

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Speaker 1: we need to ultimately serve that demand. And so, you know,

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Speaker 1: we think a lot about it, and you know, our

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Speaker 1: hope there is that the supply chain starts to think

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Speaker 1: about that the same way we do.

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Speaker 3: Brad your mantra, your manifesto. Your focus is to build

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Speaker 3: artificial general intelligence for the good of humanity. And I

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Speaker 3: speak to a lot of humans who are terrified. Can

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Speaker 3: you encapsulate how you can without regulation being there in

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Speaker 3: place yet and the ease sort of putting the court

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Speaker 3: out there. You're doing all of this without disrupting too

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Speaker 3: much too quickly. Too hot.

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Speaker 2: Yeah.

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Speaker 1: Well, look, central to our mission is to make sure

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Speaker 1: that we bring the technology in a way that's safe

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Speaker 1: and that creates broad benefit. It's really encoded into how

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Speaker 1: open Eye was structured, and it is actually the thing

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Speaker 1: that we spend our time thinking about how to deliver

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Speaker 1: in real world results today. And so we're very optimistic,

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Speaker 1: and I can understand where the fear comes from. Things

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Speaker 1: are moving very fast, even for us at the center

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Speaker 1: of it sometimes is dizzying. But look, our perspective is

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Speaker 1: that this is an enabling technology. At its core, it's

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Speaker 1: going to make businesses more efficient, it can make people

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Speaker 1: more productive, it can be dramatically inflecting in how people learn,

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Speaker 1: how people can understand information, and so we think that

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Speaker 1: that has a very broadly positive effect on the world,

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Speaker 1: and the world that we wake up to ten years

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Speaker 1: from now will be one that we look back on

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Speaker 1: and really are excited to be able to go build

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Speaker 1: today and you know works, that's that's that's really what

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Speaker 1: we wake up every day and want to go do.

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Speaker 3: So we want to thank you being in the house

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Speaker 3: with us. The CEO of open Ai, Brad Lightcap there

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Speaker 3: joining us in New York. We thank him