Walmart and other major companies are trying to diversify away from OpenAI following the upheaval among the startup's CEOs – which is a major blow to ChatGPT's market dominance as new competitors launch
- New report says customers want to ensure they don't have to rely on OpenAI's ChatGPT
- Walmart executives emphasize the need for interoperability with other tools
- It opens the door for Google and others to gain market share
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OpenAI's enterprise customers, including Walmart, are trying to reduce their dependence on the company's tools after recent leadership chaos, according to a new report.
After CEO Sam Altman was ousted in a coup in November and reinstalled days later under pressure from investors and staff, OpenAI faced questions about its governance and stability.
Shortly after the uproar, senior leaders at Walmart warned the technology team to stick with Walmart's internally developed tools, which can interchange with various AI software, rather than seeking custom solutions directly from OpenAI, the Wall Street Journal reported on Friday.
Walmart, the world's largest retailer, confirmed last April that it used OpenAI's GPT-4 software to enhance a variety of tools, including customer service chatbots and a “text to shop” feature that adds items to a shopping cart via SMS.
The company told the Journal that its focus has always been on developing tools that are compatible with many AI programs.
OpenAI's enterprise customers, including Walmart, are trying to reduce their dependence on the company's tools after recent leadership chaos, according to a new report
OpenAI ousted Altman on November 17 without any detailed reason, setting off alarm bells among investors and employees. He was recovered four days later
Walmart and OpenAI did not immediately respond to requests for comment from DailyMail.com on Friday afternoon.
According to the Journal, other companies also responded to the OpenAI turmoil by making sure they had other options.
“We're still using ChatGPT,” said Doug Merritt, the CEO of cloud networking company Aviatrix. “But I feel more comfortable that we didn't properly commit to it.”
The move to diversify could give more recent entrants an edge as they try to gain market share from OpenAI, which had a strong early advantage after publicly releasing ChatGPT just over a year ago.
Last month, Google announced its Gemini AI software, touting it as a powerful and cheaper alternative to ChatGPT.
Other AI competitors include small startups Anthropic and Cohere, as well as a free, open-source software created by Meta Platforms called Llama 2.
The ChatGPT icon displayed on a phone screen can be seen in this illustration photo
OpenAI ousted Altman on November 17 without any detailed reason, raising alarm bells among investors and employees.
Four days later he was reinstated with the promise of a new administration.
Altman's departure led to confusion about the future of the startup that was at the center of the artificial intelligence boom.
His co-founder Greg Brockman, who had followed Altman out of the company, returned as president.
Following the failed coup, OpenAI announced a new board consisting of former Salesforce co-CEO Bret Taylor as chairman and Larry Summers, former US Treasury Secretary.
Quora CEO Adam D'Angelo, who served on the board and fired Altman, also stayed on for the new one.
The new OpenAI board is actively looking for six new members with expertise in areas from technology to security and policy.