Y Combinator’s Garry Tan Goes to the MatRead more

Jasper founders Dave Rogenmoser, Chris Hull and J.P. Morgan. Art by Clark Miller; photo courtesy Jasper.
Jasper founders Dave Rogenmoser, Chris Hull and J.P. Morgan. Art by Clark Miller; photo courtesy Jasper.

The Best Little Unicorn in Texas: Jasper Was Winning the AI Race—Then ChatGPT Blew Up the Whole Game

A band of serial entrepreneurs in Austin finally scored a winner. Now they have to fight to keep it.

Jasper founders Dave Rogenmoser, Chris Hull and J.P. Morgan. Art by Clark Miller; photo courtesy Jasper.
Dec. 23, 2022 9:15 AM PST

A few weeks ago, Sam Altman, CEO of artificial intelligence startup OpenAI, logged onto a Zoom call. On the other side of the screen was Dave Rogenmoser, CEO of Jasper, a copywriting startup built on OpenAI’s flagship large-language model, GPT-3. The two companies share a Slack channel, where they trade updates and feedback about GPT-3, which is the backbone of Jasper’s business.

Rogenmoser had arranged to speak to Altman because he had just seen a post on the channel announcing ChatGPT, a new product from OpenAI that worked almost like a magic trick. With a simple prompt, ChatGPT could craft a business proposal, write a resignation letter or explain the inner workings of quantum mechanics. In fact, it worked a lot like Jasper’s core product. But unlike Jasper, ChatGPT was free.

Rogenmoser had some questions about that. “Look, we need to know some of what y’all are planning on doing,” he told Altman from his office in Austin, Tex. Jasper was an OpenAI partner, he noted—one that paid handsomely for use of GPT-3. OpenAI didn’t owe Rogenmoser anything, but if it planned to keep its chatbot available for free, the Jasper chief was going to need to rethink some things.

According to Rogenmoser, Altman assured him that ChatGPT—which had become an instant sensation, accumulating over a million users in a matter of days—wouldn’t stay free forever. Eventually, OpenAI would have to put it behind a paywall, if only to cover the staggering cost of computing. Each chat query cost OpenAI a few cents, which added up quickly when a million users pinged it multiple times a day. Altman also told Rogenmoser he hadn’t expected ChatGPT to blow up so much; he saw it more as an interface upgrade than a technological revolution, and was surprised by its breakout popularity. According to Rogenmoser, Altman offered a bit of reassurance: “We’re not trying to go and compete with our partners.”

Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Former Apple design chief Jony Ive and OpenAI CEO Sam Altman. Photos by Getty.
Exclusive
Designer Jony Ive and OpenAI’s Sam Altman Discuss AI Hardware Project
Jony Ive, the renowned designer of the iPhone, and OpenAI CEO Sam Altman have been discussing building a new AI hardware device, according to two people familiar with the conversations.
From left to right: Blair Effron, Robert Pruzan and David Handler. Photos by Getty; Tidal Partners.
Exclusive Finance
Disputes, Employee Misconduct Rattle Centerview’s Silicon Valley Dreams
The San Francisco Bay Area–based bankers at Centerview Partners, the investment bank that advised Silicon Valley Bank’s owner and Credit Suisse through recent turmoil, got two doses of bad news last week.
Art by Clark Miller
Exclusive startups entertainment
MasterClass Takes a Crash Course in Frugality
MasterClass had a problem with the shoot featuring its latest star instructor, Walt Disney Co. CEO Bob Iger.
OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella. Photos via Getty
Exclusive microsoft ai
How Microsoft is Trying to Lessen Its Addiction to OpenAI as AI Costs Soar
Microsoft’s push to put artificial intelligence into its software has hinged almost entirely on OpenAI , the startup Microsoft funded in exchange for the right to use its cutting-edge technology.
From left: Paul Graham, Garry Tan and Michael Seibel. Photos by Getty. Art by Mike Sullivan.
Exclusive startups ai
Y Combinator’s Garry Tan Goes to the Mat
Garry Tan was in his happy place. Surrounded by food trucks and techies basking in San Francisco’s September sun, the CEO of Y Combinator snapped selfies with entrepreneurs as he meandered through a crowd of 2,700 attendees at the startup accelerator’s annual alumni event.
Art by Clark Miller
The Big Read policy
Europe Has Figured Out How to Tame Big Tech. Can the U.S. Learn Its Tricks?
Late last month in Belgium, Sen. Elizabeth Warren (D-Mass.) had a pressing question for Paul Tang, a Dutch politician and member of the European Parliament.