Who – the protagonist
Sam Altman, CEO of OpenAI.
What?
OpenAI is the company responsible for accelerating the development of the large language model market (LLM).
LLMs represented a groundbreaking development in AI and natural language processing. These models, which were built using deep learning techniques, can process and generate human-like texts by leveraging vast amounts of textual data from diverse sources.
OpenAI garnered global recognition after the tremendous success of the GPT-4 language model, which powers Microsoft’s Bing Chat and explains where Duolingo app users went wrong, to name a couple of examples.
Why?
As of January 2023, OpenAI was valued at an estimated $29 billion, but in a rapidly evolving LLM landscape Altman deliberated the company’s next strategic move.
Most of the key issues that Altman needed to address revolved around the future of OpenAI’s business model and business strategy in the LLM market.
Under consideration was the entire LLM value chain, from chip making to cloud computing, the models themselves, the applications, and finally, the end users.
When?
It was April 2023 when Altman was debating the best way forward for OpenAI.
Where?
Headquartered in San Francisco, OpenAI is very much part of the Silicon Valley scene.
Silicon Valley giants including Altman and Elon Musk founded the company, while Microsoft invested $1 billion and became a preferred partner for commercialising Open AI’s products.
Key quote
What next?
Altman had much to ponder.
Considerations included the landscape of the LLM market and competitive dynamics within the industry, the potential implications of the shifting economics of chip manufacturing and cloud computing on Open AI’s strategy, and the importance of ethical considerations and potential regulatory challenges in the LLM market.
The path of OpenAI and countless individuals and businesses hinged on the choices Altman would make.
On the reasons for writing the case…
Sampsa and Pascual said: “We are fascinated by the rapid advancements in artificial intelligence and how OpenAI has been a significant player in the field. So, we wanted to write a case that would help students make sense of those developments and to have some idea of where things are going and what to keep an eye out for. Also, OpenAI brings up important ethical questions, which we thought would stimulate meaningful discussion in the classroom.”
On the case writing challenges…
Sampsa and Pascual continued: “The main challenge was to distill the rapid developments comprehensively into a single document that could be discussed in class. The intertwining of ethics, technology, and business strategy made it a challenge to present all aspects coherently. Another challenge was to present the case in a comprehensive yet understandable manner for students with varying backgrounds.”
On teaching the case…
They explained: “It has indeed been very insightful to use existing strategy frameworks to understand rapidly developing settings. There are a range of perspectives one can take with the case and it could be used in a variety of courses and with different audiences.”
On how students react to the case…
They commented: “The case often leads to lively debates among students and programme participants, highlighting the complexities involved. The issues at hand are so many that the case often engages students from multiple fields - engineering, business, ethics, law, etc. Additionally, students value that the challenges presented in the case are issues currently being grappled with in the real world.”
On case writing tips…
Sampsa and Pascual added: “A useful tip is to present a relevant business situation with no clear path forward. In the end, a good case provides multiple alternatives, each with its own pros and cons. In the case of OpenAI, it's not entirely clear how the company should compete in an industry that is rapidly evolving.”
Final word…
Sampsa and Pascual concluded: “Given how quickly the field of AI is evolving, supplementing the case with real-time updates can make the teaching experience more dynamic. This represents a challenge as we need to refine the case very frequently. However, writing and teaching this case has been educational for us as well, keeping us invested in the ongoing developments in AI.”
The case
Who – the protagonist
Sam Altman, CEO of OpenAI.
What?
OpenAI is the company responsible for accelerating the development of the large language model market (LLM).
LLMs represented a groundbreaking development in AI and natural language processing. These models, which were built using deep learning techniques, can process and generate human-like texts by leveraging vast amounts of textual data from diverse sources.
OpenAI garnered global recognition after the tremendous success of the GPT-4 language model, which powers Microsoft’s Bing Chat and explains where Duolingo app users went wrong, to name a couple of examples.
Why?
As of January 2023, OpenAI was valued at an estimated $29 billion, but in a rapidly evolving LLM landscape Altman deliberated the company’s next strategic move.
Most of the key issues that Altman needed to address revolved around the future of OpenAI’s business model and business strategy in the LLM market.
Under consideration was the entire LLM value chain, from chip making to cloud computing, the models themselves, the applications, and finally, the end users.
When?
It was April 2023 when Altman was debating the best way forward for OpenAI.
Where?
Headquartered in San Francisco, OpenAI is very much part of the Silicon Valley scene.
Silicon Valley giants including Altman and Elon Musk founded the company, while Microsoft invested $1 billion and became a preferred partner for commercialising Open AI’s products.
Key quote
What next?
Altman had much to ponder.
Considerations included the landscape of the LLM market and competitive dynamics within the industry, the potential implications of the shifting economics of chip manufacturing and cloud computing on Open AI’s strategy, and the importance of ethical considerations and potential regulatory challenges in the LLM market.
The path of OpenAI and countless individuals and businesses hinged on the choices Altman would make.
Author perspective
On the reasons for writing the case…
Sampsa and Pascual said: “We are fascinated by the rapid advancements in artificial intelligence and how OpenAI has been a significant player in the field. So, we wanted to write a case that would help students make sense of those developments and to have some idea of where things are going and what to keep an eye out for. Also, OpenAI brings up important ethical questions, which we thought would stimulate meaningful discussion in the classroom.”
On the case writing challenges…
Sampsa and Pascual continued: “The main challenge was to distill the rapid developments comprehensively into a single document that could be discussed in class. The intertwining of ethics, technology, and business strategy made it a challenge to present all aspects coherently. Another challenge was to present the case in a comprehensive yet understandable manner for students with varying backgrounds.”
On teaching the case…
They explained: “It has indeed been very insightful to use existing strategy frameworks to understand rapidly developing settings. There are a range of perspectives one can take with the case and it could be used in a variety of courses and with different audiences.”
On how students react to the case…
They commented: “The case often leads to lively debates among students and programme participants, highlighting the complexities involved. The issues at hand are so many that the case often engages students from multiple fields - engineering, business, ethics, law, etc. Additionally, students value that the challenges presented in the case are issues currently being grappled with in the real world.”
On case writing tips…
Sampsa and Pascual added: “A useful tip is to present a relevant business situation with no clear path forward. In the end, a good case provides multiple alternatives, each with its own pros and cons. In the case of OpenAI, it's not entirely clear how the company should compete in an industry that is rapidly evolving.”
Final word…
Sampsa and Pascual concluded: “Given how quickly the field of AI is evolving, supplementing the case with real-time updates can make the teaching experience more dynamic. This represents a challenge as we need to refine the case very frequently. However, writing and teaching this case has been educational for us as well, keeping us invested in the ongoing developments in AI.”
