Y Combinator’s Garry Tan Goes to the MatRead more

Photo by Getty

What OpenAI Is Doing That Google Isn’t

Photo: Photo by Getty

Sibling rivalry. It’s a real thing, as any parent with more than one child knows, and it can either motivate a kid to work harder or alienate them. No, you haven’t accidentally opened a newsletter about parenting. Sibling rivalry turns out to be a big problem in tech. It prevented the two AI labs within Google’s parent Alphabet from working together, at least until very recently, which likely slowed Alphabet’s progress in AI. But it doesn’t have to be fatal. As we outlined today in this report, OpenAI’s ability to get its researchers and engineers working together was a major factor in its success getting an AI-powered chatbot to market before Google.

Google is trying to get its act together, we reported last week, as its two AI labs are now cooperating. Even so, this episode may be the most compelling evidence of how Google is losing its edge. When a company gets so big that its progress is stymied by infighting among different divisions, you have a problem. Outside of tech, Time Warner was renowned for an unwillingness of its different divisions to collaborate. It paid a price. What was once the premier entertainment company eventually got partly dismantled and then sold. 

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.
Dave Rogenmoser, cofounder of Jasper. Photo via Getty.
Exclusive startups ai
Jasper, an Early Generative AI Winner, Cuts Internal Valuation as Growth Slows
Jasper AI, an early darling of the generative artificial intelligence boom, has cut the internal value of its common shares 20%, according to former employees who were notified by the company.