From Vision to $90 Billion: How OpenAI Became America’s Second Most Valuable Startup

Uzone.id — For the past years, OpenAI has transformed into one of the giant tech companies amidst the rapid development of technology. It has successfully become the second most valuable startup in the world after Elon Musk’s company, SpaceX. With its $90 billion valuation, OpenAI has proved that Artificial Intelligence (AI) has enormous potential to change how we live, work, and learn.

“OpenAI’s success lies in its ability to bridge technological innovation with real-world applications. They not only create algorithms but also ecosystems that drive widespread adoption of AI technology,” said Dr. Andrew Ng, co-founder of Coursera.

OpenAI was established in 2015 by well-known figures such as Elon Musk, Sam Altman, Greg Brockman, Ilya Sutskever, John Schulman, and Wojciech Zaremba. Their vision is to create a safe and valuable artificial intelligence for everyone. 

With an open research and development-based approach, OpenAI initially focused on in-depth investigation of AI technologies without dominant commercial motives. 

However, the need for funding to support large projects has transformed OpenAI into a commercial entity. In 2019, OpenAI launched OpenAI LP, a limited-profit company, to support more ambitious technology development.

Success Factors

1. Product Innovation

One of the main factors in OpenAI’s success is the continuous innovation of technology such as GPT (Generative Pre-Trained Transformer), which has become the core of various AI applications. GPT-3 is capable of generating text that resembles text written by humans, opening new opportunities for new applications in the fields of creative writing, translation, and software development. On the other hand, GPT-4 has been used in various sectors, including education, healthcare, entertainment, and business, thanks to its capabilities to generate text and analyze data to give creative solutions for any problems. 

Through GPT-based technology, OpenAI launched ChatGPT, which has become a global phenomenon. ChatGPT generates natural conversations and provides informative responses to various questions. Today, ChatGPT technology also allows users to converse with it through voice. ChatGPT’s capabilities have attracted the interest of millions of users worldwide and made it one of the most popular AI applications.

2. Business Strategy

One of the clever business strategies OpenAI uses is partnering with big technology companies like Microsoft. In 2023, Microsoft increased its investment in OpenAI, which previously contributed $1 billion in 2019. Through this partnership, OpenAI gets access to vast computing resources such as Azure cloud infrastructure, which enables it to develop more advanced AI technologies. In addition to Microsoft, companies like Khosla Ventures and Sequoia Capital have also invested billions of dollars in OpenAI.

Besides that, OpenAI also focuses on product development that the general public can use. This increases awareness of AI technology while helping OpenAI collect valuable data to continuously improve its AI models.

3. Cyber Security and Ethics

OpenAI has committed to safe and ethical AI development. In a recent report, It stated that it has allocated dedicated resources to AI security research to ensure that its technology is not misused.

The Impact

OpenAI’s fantastic valuation has shown the significant effect of AI technology in various aspects of our lives. The GPT-based platform has been used in education to give more personal and interactive learning. AI from OpenAI has helped companies optimize their operational processes and increase customer satisfaction. 

However, this achievement comes with worries. People have started to worry that AI may threaten human jobs. According to a study conducted by the World Economic Forum, around 85 million jobs are expected to be replaced by AI technology by 2025, although around 97 million new jobs will also be created.

The success of OpenAI in becoming America’s second most valuable startup is clear evidence of the potential of AI technology. It comes from a strong vision, technology innovation, and smart business strategy. Their success has not only inspired the technology industry but also opened up a new opportunity for other industries to harness the potential of AI.


Writer: Adinda Ayu Sasqia Putri