What Sam Altman’s Firing Means for AI Businesses (trouble ahead…)

Key Takeaways

open AI CEO Sam Alman just got fired and now rehired by Microsoft which has some pretty serious repercussions for us all as AI business owners in 2024 and Beyond don't be fooled this is not your regular startup leadership reshuffle this is a gigantic shift in the direction for a company that we have all built our businesses on top of and in these kind of situations it's more important than ever to get the right information so that you can carefully plann your next steps over the past 24 hours I've soaked up as much information as possible from the smart hardest people I know in the AI space to create this video where I'll be breaking down what happened why it happened and most importantly explaining the three major repercussions for us as AI business owners so that you can start making moves now while everyone else is still confused if you're new to the channel and don't know who I am my name is Liam otley and I run my own AI development company called Morningside Ai and I also run the largest community of AI agency owners in the world where my students learn how to make money by selling AI solutions to businesses I'm sure most of you know by now that the open AI board has voted Sam Alman out as CEO Greg Brockman the chairman of the open AI board also left with him in his place we now have a new CEO imit Shar the co-founder of twitch today we've just received news that Sam Alman and Greg Brockman have been hired to lead Microsoft Advanced AI research team which is a huge development in this story The more important question for us is why this has happened if we can figure out the why we can start to guess or at least estimate where the company may be headed under this new leadership while we get to hear official statements from each of the different parties involved the evidence that we do have points to some sort of clash in the leadership between ilas sker and the Sam and Greg Duo this is a fight really between the two camps of research lead by Elliot and product lead by Sam the reason for this Clash is attributed largely to open ai's departure from its original Mission of ensuring that artificial general intelligence benefits all of humanity the company was founded as a nonprofit research lab and the recent Dev day demonstrated a clear departure from this the concept of Revenue sharing on the GPT store seems to be the most glaring example of this there are also rumors of safety concerns with Ilia and the board seeing the recent releases as moving too fast for such a potentially dangerous technology allowing everyone to create their own custom versions of chat GPT with the new gpts release could be seen as handing over the keys of this powerful technology over to the world to play with also the new assistant API allows to create agents that create other agents which in itself is seemingly quite dangerous so what does this mean for us as entrepreneurs looking to build businesses in the AI space well there are three potential repercussions that I've identified the recent open AI Dev day was clearly the straw that broke the camels back therefore the spotlight is on these recent releases for changes or even outright withdrawal of features as mentioned releasing gpts to the public and the idea of Revenue sharing for the upcoming GPT store could have been the red line that was crossed here the fact that chat GPT plus which allows people to create their own gpts has stopped stop accepting new users could be the first step in this Crackdown on gpts as we've cont to know them it could also mean that we see the assistant API change in some way to build in safety precautions as it stands right now as I mentioned before you can create agents that create other agents which in itself is seemingly quite dangerous we will have to wait and see how this all plays out but we really need to keep our ear to the ground to Pivot to whatever open AI does in the near term and adjust accordingly if open AI does change course to moving more slowly and and walk back on some of these product releases we will likely see this void filled very quickly I think that with the gpts release open AI has shown the world what's possible and now everyone has a taste for blood if open AI does end up walking back on this you can bet that a competitor will step up to the plate and give the people what they want the most likely competitor seems to be a Sam Alman and Greg Brockman AI company which picks up where they left off at open AI this may be where us as AI business owners need to move to continue being able to deliver GPT style Solutions the potential with the diversification of the AI industry away from one Behemoth that 99% of all AI apps are being built with will have massive repercussions to illustrate this I've actually got a couple handy slides from the guys at latent space which is a great AI newslet that I'm subscribed to so I'll link them down below if you want to jump on their list as well firstly we have what they call the software 3.0 stack with foundational models like gp4 serving as the system of reasoning a middle layer of tooling and finally some kind of interface be it Voice or chat this is a really handy way of understanding how AI applications are created currently so if you want to pause the video and take a look at this you can do that now next we have a breakdown of the foundational model landscape and how that could change over the next year or two if open AI does do a big pivot here this diagram does assume the creation of a Sam and Greg AI company that raises a boatload of money and becomes a major competitor while open AI kind of drifts off into safer territories I was just in the process of uploading this video as the Microsoft news came out about the hiring of salm and grig so obviously the idea of the salmon GG AI company going off and soaking up some market share from open AI it's the window but it will be very interesting to see how Microsoft moves forward now that they have this Advanced research team led by Sam and Greg and they also have the open AI research Wing as well so we've yet to see what the strategy is going to be but I think it could definitely shake up the industry and continue to sort of diversify the space away from just open AI being the king in the space that everyone is using the possibility of the AI Market becoming a chess board with no Kings would change the landscape for us as AI business owners significantly especially when it comes down to how we build our solution particularly in the kinds of models and tools that we use in this scenario our Solutions may need to be more able to chop and change between competing models more easily which really highlights a massive new need in the market for what's called Model agnostic tooling basically if there are three four five competing foundational models like gp4 clae Etc that are all on the same level we will need to build our Solutions in a ways that are not fixed to one company's ecosystem in order to do this we need to be able to build tools such as knowledge bases web searching image generation and most importantly custom functions that can plug into any of these different ecosystems from the different companies for example you can just build one custom function or one tool and easily swap out the models with minimal friction instead of building your Solutions on the open AI agent platform you would build your Solutions on a platform that allows you to centralize the functionality and then just plug in a model of your choice as the reasoning engine to process user inputs and to call tools as needed conveniently this is exactly what my new platform agentive is designed to do as agency owners operating in an environment like this we need to be more Nimble than ever and being able to centralize your knowledge bases your search capabilities and custom functions will be critical to doing just that myself and my team at War side have created a agentive to make building managing and deploying agents as straightforward as possible for businesses and more importantly for agencies like you who are creating solutions for clients next week we are launching our beta test and we are allowing the first 500 people who sign up to our wait list to get 12 months of free access to agenta there will be a link below in the description if you do want to sign up to the wait list and if you miss out on that first 500 you'll be put in the queue as we onboard more users over the coming weeks ative is starting of course with open AI assistance via the assistance API but this is really just the first step for us towards creating the tooling platform that you will all need to function and prosper in this coming environment I'm so excited to share this with you all and really see how much of an impact it will make on your business and I wish I could say that I planned it but the Sam Alin episode has increased the value of ative massively for all of you finally another key repercussion for AI business owners is the potential slowing of new feature releases from open AI if Ilia has one over the board and has directed the ship back towards its original Focus this will mean a significant reallocation of resources back to his side of the business and drying up the funds that have enabled rapid creation of the models and updates like gpts and the assistance API and to add to the fire Sam's firing has already put open ai's Future ability to raise funds at risk with a pending share sale that would have valued the company at 80 6 billion now being in Jeopardy without a source of new funds and A Renewed focus on Research over products we could see the advancements that we've grown to expect and know from open AI to dry up quickly in this case we can no longer expect new releases from open AI every 6 months that's going to blow our socks off the rate of innovation will likely decrease greatly which will also fit into Ila's desire to slow things down until they can do the research required for everything to be safe in their eyes of course most of this is speculation so I'd love to hear your thoughts in the comments section below if you have any information that have missed or you have a different take on things but what we can say for sure is that the AI space is up in the air right now with Sam and Greg going off the join Microsoft we are entering a new era that will involve significant change but with this as always there will come huge new opportunities for us as early birds to establish our businesses and make money if you're an aspiring AI entrepreneur and want to stay up to date on how you can capitalize on these opportunities as they come be sure to headit down below and subscribe to the channel as I'll be continuing to highlight the ways that you can sell these new AI Solutions as they emerge I also want to add a gentle reminder that this kind of volatility is the price we pay for being in a space with such huge upside potential while you may feel anxious or confused which I definitely do feel as well sometimes remember that this is part of the territory and there will be plenty of time for you to find something that works for you also a reminder if you haven't already signed up to the wait list for ative it's in the description below so if you want to get Early Access or even free access for 12 months to the tools that you need to make money in this market no matter which way things go then you can sign up down and if you want to see my thoughts on the open AI Dev day and the gpts release and how they impact AI businesses then you can check out this video here but aside from that that's all for the video guys thank you so much for watching and I will see you in the next one