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OpenAI Hopes Apple Partnership Can Give It 1 Billion Users | PYMNTS.com
The artificial intelligence (AI) company is targeting that number and anticipating a new phase of growth driven by new products, new data centers and its partnership with Apple, the Financial Times (FT) reported Saturday (Nov. 30). The startup's ChatGPT chatbot has added 250 million weekly active users since its launch two years ago, the report said. Now, OpenAI plans further expansion via AI agents, its own AI-powered search engine and ChatGPT's integration with Apple products. "[In 2025] we will be coming into our own, as a research lab serving millions ... hoping it can be billions of consumers around the world," Sarah Friar, the company's chief financial officer, said in an interview with FT. After the largest fundraise in Silicon Valley history in October -- $6 billion -- she said the $150 billion company would continue to raise "more money," both equity and debt. Since she joined the company in June, "We put 10 billion of liquidity on the balance sheet. So that was my way of saying, 'Hey, I'm going to get stuff done too,'" Friar added. "We're in a massive growth phase, it behooves us to keep investing. We need to be on the frontier on the model front. That is expensive." Chris Lehane, OpenAI's new policy chief, told FT the company plans to achieve its goals by building data centers clustered throughout the American Midwest and Southwest. The FT said this push to construct its own AI infrastructure mirrors similar efforts by Big Tech rivals such as Google and Amazon. Lehane said "chips, data and energy" are the key resources needed to succeed in the AI race. The news follows a report from last week that OpenAI was adding to its sales staff as it tries to ride the AI wave to reach $100 billion in revenue by 2029. In other AI news, PYMNTS wrote recently about efforts by chief operating officers (COOs) to use generative AI for critical operations, like production feedback and cybersecurity management. Research by PYMNTS Intelligence shows that 57% of COOs are using GenAI to monitor production in August, up from 32% in May. At the same time, AI use for automated cybersecurity systems climbed 17% to 55% in the same time frame, spotlighting rising confidence in its ability to manage complex systems and guard against cyberthreats. "In addition to high-impact functions, COOs rely on GenAI for tasks like data visualizations, workflow management and routine automation," PYMNTS wrote. "The share of COOs using GenAI for visualizations grew from 53% to 67% between May and August, underscoring its role in improving operational efficiency across departments."
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OpenAI Targets 1 Billion Users by 2025 with AI Innovations and Apple Partnership: Report
Introducing AI agents -- chatbot assistants to perform complex tasks for everyday users. OpenAI is reportedly aiming to reach 1 billion users by 2025 as it rolls out new artificial intelligence products (AI), builds its own data centres, and strengthens its crucial partnership with Apple to drive its next phase of growth. The AI-powered ChatGPT chatbot has acquired 250 million weekly active users since its launch and plans to expand further by launching AI "agents", a proprietary AI-powered search engine, and deeper ChatGPT's integration with Apple devices. Also Read: Orange Partners With OpenAI and Meta to Expand AI Models for African Regional Languages "We will be coming into our own as a research lab serving millions and hoping it can be billions of consumers around the world," Financial Times quoted Sarah Friar, OpenAI's chief financial officer, as saying. In October, the company raised over USD 6 billion in funding at a valuation of USD 150 billion, making it the highest-valued startup in Silicon Valley's history. Friar said OpenAI plans to continue raising "more money" -- both equity and debt -- to fuel its growth, which includes building data centres in the US Midwest and Southwest. "We put ten billion of liquidity on the balance sheet. So that was my way of saying, hey, I'm going to get stuff done too," she reportedly said, adding "We're in a massive growth phase, it behoves us to keep investing. We need to be on the frontier on the model front. That is expensive." Also Read: OpenAI Raises USD 6.6 Billion to Accelerate AI Research and Expansion To achieve its expansion goals, OpenAI plans to invest in building clusters of data centres in parts of the US midwest and southwest, according to Chris Lehane, OpenAI's new policy chief. According to the report, this move to develop its own AI infrastructure follows strategies employed by major tech companies such as Google and Amazon. Lehane highlighted that "chips, data, and energy" are the essential resources for winning the AI race. OpenAI has onboarded its first financial and product leaders, expanded its workforce fivefold to over 2,000 people, and triggered a complex transition from a non-profit to a for-profit business model, the report further added. The company is spending over USD 5 billion a year, and "not close to breaking even" due to the costs related to building AI models, according to people with knowledge of the group's finances. "The last couple of years, we have had a really big inflection point in the quality of intelligence that can now be made into products that are actually useful for people," the report quoted Srinivas Narayanan, Vice-President of Engineering at OpenAI, who joined last year from Meta. "That's why I'm here," he added. Also Read: OpenAI Partners with Hearst for Expanded AI Content Integration OpenAI's key focus for 2025 includes launching "AI agents" -- advanced chatbot-like assistants capable of performing a variety of tasks, from booking services to gathering information or making purchases. Friar said 2025 could see the first highly successful agents helping users with everyday needs. "Agentic has got to be the word of the year. It could be a researcher, a helpful assistant for everyday people, working moms like me. In 2025 we will see the first very successful agents deployed that help people in their day-to-day," the report quoted Friar as saying. Integration with Apple devices, which began in the US last month, is expected to significantly drive user growth. According to the report, one of OpenAI's major venture capital investors said the company could quickly reach its goal of 1 billion users by leveraging Apple's global base of 2 billion iPhones. "OpenAI already at a few hundred million active users today without spending on marketing," the investor noted, according to the report. "Apple has 2 billion iPhones globally and want to push a new AI phone. The path to getting 1 billion users with ChatGPT in their pocket is not that farfetched. If you get to that threshold, you're competing with Google and Facebook." Also Read: OpenAI Enhances ChatGPT with Integrated Web Search Feature According to the report, OpenAI's expansion comes amidst a politically charged environment. Chris Lehane, the company's policy chief and a seasoned political strategist, is working with US policymakers to position OpenAI as a leader in "democratic" AI, aiming to counter China's technological advancements. Lehane revealed that OpenAI has been engaging with the incoming Trump administration to discuss AI's importance for national security and economic competitiveness. Despite ongoing tensions with former co-founder Elon Musk, including a lawsuit where Musk alleges deception by OpenAI, Lehane emphasised the company's alignment with federal priorities for AI leadership.
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Apple Partnership, AI Agents, And Major Infrastructure Investments: OpenAI Executives Outline Strategy To Attract 1B Users By 2025 - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)
ChatGPT-parent OpenAI is setting a target to reach 1 billion users by 2025, driven by new AI products, a key partnership with Apple Inc. AAPL, and significant infrastructure investments. What Happened: "[In 2025] we will be coming into our own, as a research lab serving millions . . . hoping it can be billions of consumers around the world," OpenAI's CFO Sarah Friar told the Financial Times. After securing over $6 billion in funding at a $150 billion valuation in October, she stated that OpenAI plans to raise additional capital through both equity and debt. "We're in a massive growth phase, it behoves us to keep investing. We need to be on the frontier on the model front. That is expensive." To meet its goals, OpenAI plans to build data center clusters in the U.S. Midwest and Southwest, according to policy chief Chris Lehane. See Also: Trump's AI Czar Plans, Alibaba's New Model, Cathie Wood On Tesla AI, And Musk's Combat Transformation: This Week In Artificial Intelligence This move mirrors strategies used by major tech companies like Alphabet Inc.'s GOOG GOOGL Google and Amazon.com, Inc. AMZN. Lehane wants OpenAI to spearhead the development of AI that is led by the U.S. and aligns with democratic values, contrasting it with the Chinese approach. "This administration has talked . . . about the imperative of . . . U.S.-led AI prevailing over Chinese-led AI. And if you want that to happen as the U.S. government . . . then OpenAI is going to have to be in the middle of that conversation," he said. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: Previously it was reported that OpenAI is preparing to launch a new AI agent, called "Operator," in January. Other major tech companies, like Microsoft and Alphabet, have already launched or are getting ready to introduce similar AI agent tools. Meta Platforms Inc. (META) CEO Mark Zuckerberg has also spoken about the shift from chatbots to AI agents, which can manage more complex tasks and objectives. Nvidia Corporation NVDA CEO Jensen Huang has also predicted that AI employees will soon become an integral part of the corporate workforce. Meanwhile, OpenAI is currently navigating a complex political landscape, with Tesla and SpaceX CEO Elon Musk filing a lawsuit against the startup and its backer, Microsoft Corporation MSFT. Regarding this, OpenAI's policy chief stated, "I think the way we think about it is we control what we can control. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Apple Products Dominate Early Black Friday Trending Searches Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs
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OpenAI aims to reach 1 billion users by 2025 through new AI products, data center investments, and a partnership with Apple. The company plans to introduce AI agents and expand its infrastructure to compete with tech giants.
OpenAI, the company behind the popular ChatGPT, has set an ambitious target to reach 1 billion users by 2025. This goal is underpinned by a multi-faceted strategy involving new AI products, significant infrastructure investments, and a key partnership with Apple 123.
Since its launch two years ago, ChatGPT has amassed 250 million weekly active users 1. To fuel its growth, OpenAI recently secured over $6 billion in funding, valuing the company at $150 billion – the largest fundraise in Silicon Valley history 12. Sarah Friar, OpenAI's CFO, indicated that the company would continue to raise more capital through both equity and debt to support its expansion 1.
OpenAI plans to introduce several new products to drive user growth:
To support its growth, OpenAI is investing heavily in infrastructure:
Chris Lehane, OpenAI's policy chief, emphasized that "chips, data, and energy" are the key resources needed to succeed in the AI race 13.
The integration of OpenAI's technology with Apple devices, which began in the US last month, is expected to significantly boost user growth 2. This partnership could potentially leverage Apple's global base of 2 billion iPhones to help OpenAI reach its 1 billion user goal 2.
Despite its rapid growth, OpenAI is reportedly spending over $5 billion annually and is "not close to breaking even" due to the costs associated with building AI models 2. The company's transition from a non-profit to a for-profit model and its massive expansion in workforce (now over 2,000 employees) contribute to these expenses 2.
OpenAI is positioning itself as a leader in "democratic" AI, aiming to counter China's technological advancements 23. The company is engaging with US policymakers, including the incoming Trump administration, to discuss AI's importance for national security and economic competitiveness 2.
As OpenAI pursues its ambitious goals, it faces competition from tech giants like Google, Amazon, and Microsoft, who are also heavily investing in AI infrastructure and products 13. The company's strategy reflects the intensifying race in the AI industry, with major players vying for dominance in this rapidly evolving technological landscape.
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OpenAI, the artificial intelligence powerhouse, is reportedly in talks with tech giants Apple and Nvidia for a potential investment that could push its valuation to a staggering $100 billion. This development comes amidst growing competition in the AI sector and concerns about OpenAI's future.
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OpenAI's ChatGPT sees a significant surge in weekly active users, doubling its user base in under a year. Meanwhile, the company is reportedly seeking a new funding round that could value it at $100 billion.
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OpenAI, the company behind ChatGPT, is reportedly in talks for a share sale that could value it at $80-$90 billion. Investors are betting on the potential of AI to revolutionize various industries, despite concerns about profitability and competition.
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Tech giants Apple and Nvidia are reportedly in discussions to participate in OpenAI's latest funding round, which could value the AI company at $100 billion. This move signals growing interest in AI technology among major players in the tech industry.
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Apple has withdrawn from discussions to invest in OpenAI's latest funding round, valued at $6.5 billion. This decision raises questions about Apple's AI strategy and its relationship with OpenAI, despite plans to integrate ChatGPT into its products.
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