OpenAI is Building the iPhone of AI
The evolution of OpenAI’s suite of models is very similar to that of Apple’s iPhones. With every successive and advanced update, consumers are willing to pay an extra price to enjoy the promised experience. “The o1 preview is deeply flawed, but when o1 comes out, it will feel like a major leap forward,” said OpenAI’s chief, Sam Altman, on his long-term vision of providing quality over quantity. Altman himself draws heavily from Steve Jobs’ legacy and is actively building the ‘iPhone of artificial intelligence’. His focus on shipping “rockets” instead of trash isn’t just a throwaway observation about the current AI market, but a core part of OpenAI’s new strategy. “Our first product, GPT-3, was not something we were particularly proud of at the time,” admitted Altman in an interview. The transition from GPT-3.5 to GPT-4, and soon to GPT-5, is an interesting case study of how every new update renders the earlier versions less significant – a trend particularly evident in the case of iPhones. Older Models Turn (Almost) Redundant Similar to how the iPhone 16 made the iPhone 11 look a little less appealing, OpenAI’s GPT-2, too, lost its sheen after the release of GPT-4 or o1. So now, even intelligence gets an iPhone-like upgrade. That explains why Apple is also looking to invest in OpenAI. Much like the rapid and unforeseen rise of smartphones—now so essential we can hardly imagine life without them—AI is moving along a similar path. With companies like OpenAI rolling out ever-evolving models, its widespread adoption feels inevitable. Besides, it’s making older versions redundant. Roman Huet, the head of developer experience at OpenAI, confirmed on X that the upcoming DevDay would not see any new models or ChatGPT features, but only API updates, unlike the last year’s event, which saw a series of big announcements. The evolution of ChatGPT, and OpenAI’s models since 2022, is very telling of the company’s direction towards shipping big. Conversely, it would be interesting to see that even for its incremental advanced features, if the company charges for them, there would be buyers, as the previous free versions wouldn’t provide the same value. “I think the one big difference between smartphones and AI models is that the former is very incremental, but what is happening with AI is that the next feature is very exponential—in terms of capabilities and adoption. We have seen this with our own models—the capabilities of the newer ones are much better than the previous ones,” said Manu Kumar Jain, CEO at G42. Jain previously spearheaded the smartphone adoption in the country during his tenure at Xiaomi, and is now following a similar strategy with their largest Hinglish AI model, NANDA (named after the second-highest peak in India, Nanda Devi). Manu Kumar Jain, G42 India CEO, in conversation with AIM editor Amit Raja Naik at Cypher 2024 “With NANDA, we are creating a model that speaks to India–its languages, its people. This is not just about AI for a few; it’s AI for a billion,” said Jain, adding that the adoption of AI in real-life cases is sometimes higher than smartphones. “In the coming years, we cannot imagine our lives without AI, and I believe its adoption curve will be even higher than the smartphones,” he added. iPhone-Like Models Altman has always been obsessed with clean aesthetics. The simple and intuitive design language of OpenAI, consistent across its suite of products, especially ChatGPT, adds to its appeal. ChatGPT brought in this revolution, and with every successive update, we are seeing the older models get obsolete. In terms of adoption, catering to user experience will be the key differentiator for AI companies moving forward, and OpenAI is already incentivising in this area. Taking this up a notch on the minimal route, OpenAI’s potential logo rebranding from its current symmetrical hexagon to a bold, simple black “O” is a bid to convey an impending brand and ideology shift within the company. It is interesting to note that OpenAI’s typefaces are currently licensed. Former iPhone designer Jony Ive joining OpenAI sort of solidifies this new creative journey that the company has embarked upon. While the project he would work on is undisclosed, his influence on the company’s future design would be huge. All of this appears to be an organic push for Altman towards a paradigm where he is slowly adopting a strategy of offering premium experiences to his consumers, which is very quintessential of the early iPhone wave. “We’ve started to deliver great products, but we’re going to deliver far greater ones,” Altman said. Altman has always been an iPhone fanboy. OpenAI’s offerings, like o1, Sora, DALL·E, and the new ChatGPT advanced voice feature, are proof that advanced intelligence and accessibility can be availed for as low as $20 (for now, as higher subscription prices may be announced at OpenAI’s DevDay 2024). And just like the iPhone, consumers would be willing to pay for it.
Sam Altman is in the business of building premium experiences for OpenAI users.
Sam Altman is in the business of building premium experiences for OpenAI users.
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I hold a degree in political science, and am interested in how AI and online culture intersect. I am at aditi.suresh@analyticsindiamag.com &amp; x.com/aditisuresh12