OpenAI Bids for Japan Business as It Opens Tokyo Office 

Journalists are silhouetted at OpenAI’s press conference about the opening of its first Asia office in Tokyo, Japan April 15, 2024. (Reuters)
Journalists are silhouetted at OpenAI’s press conference about the opening of its first Asia office in Tokyo, Japan April 15, 2024. (Reuters)
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OpenAI Bids for Japan Business as It Opens Tokyo Office 

Journalists are silhouetted at OpenAI’s press conference about the opening of its first Asia office in Tokyo, Japan April 15, 2024. (Reuters)
Journalists are silhouetted at OpenAI’s press conference about the opening of its first Asia office in Tokyo, Japan April 15, 2024. (Reuters)

Microsoft backed artificial intelligence startup OpenAI made a pitch for business in Japan on Monday as it opened its first Asia office in Tokyo.

"This is just the first step in what I hope will be a long-term partnership with the people of Japan, government leaders, businesses and research institutions," OpenAI CEO Sam Altman said in a video message.

The startup, which has caused excitement among consumers since the launch of its ChatGPT generative AI chatbot in late 2022, is looking to grow new sources of revenue globally.

Altman and Chief Operating Officer Brad Lightcap have hosted hundreds of Fortune 500 company executives in the United States and Britain this month to pitch for business, Reuters has reported.

Last year Altman said he was considering a Japan location after meeting Prime Minister Fumio Kishida. The startup has also opened offices in London and Dublin.

Japan hopes to take advantage of AI as it looks to compete with an increasingly assertive China, accelerate the shift to digital services and alleviate deepening labor shortages.

"We have a backlog of demand," Lightcap told reporters in Tokyo, adding that "we expect a meaningful contribution from Japan over time," without providing details.

OpenAI said it has a custom model optimized for the Japanese language and that Tadao Nagasaki, who was president of Amazon Web Services in Japan, is heading the Japan business.

While the country is seen as a laggard in the technology, local companies including telcos SoftBank and NTT are investing in large language models.

OpenAI's customers in Japan include automaker Toyota Motor, manufacturer Daikin Industries and local government.

Microsoft said last week it would invest $2.9 billion over two years in cloud and AI infrastructure in Japan, part of a wave of investment globally by US tech giants.



OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI is venturing into a territory long dominated by Google with the selective launch of SearchGPT, an artificial intelligence-powered search engine with real-time access to information from the internet.

The move, announced on Thursday, also places the AI giant in competition with its largest backer Microsoft's Bing search and emerging services such as Perplexity — a search-focused AI chatbot firm backed by Amazon founder Jeff Bezos and semiconductor giant Nvidia.

Shares of Google's parent company Alphabet ended 3% lower on Thursday after OpenAI's announcement.

OpenAI said it has opened sign-ups for the new tool, which is currently in the prototype stage and is being tested with a small group of users and publishers. The company plans to integrate the best features from the search tool into ChatGPT in the future.

"AI-powered search tools from OpenAI and Perplexity re-affirm search as a content engagement model but pressure Google to be better at its own game," Canaccord Genuity analyst Kingsley Crane said.

Google dominates the search engine market with a 91.1% share as of June, according to web analytics firm Statcounter.

SearchGPT will provide summarized search results with source links in response to user queries, OpenAI said in a blog post. Users will also be able to ask follow-up questions and receive contextual responses.

The company will give publishers access to tools for managing how their content appears in SearchGPT results. News Corp and The Atlantic are publishing partners for SearchGPT.

SearchGPT signals a closer collaboration between publishers and OpenAI, following content licensing agreements with major organizations like Associated Press, News Corp and Axel Springer.

"Newer AI-powered search providers could face challenges of their own, with Perplexity already facing pending legal action from publishers like Wired and Forbes, and Condé Nast," said Crane.

Major search engines have been trying to integrate AI into search since ChatGPT first launched in November 2022. Microsoft, through its early investment, adopted OpenAI technology for its Bing search engine, while Google rolled out AI-powered summaries for the wider public at its developer conference in May.

Google did not respond to a Reuters query on the potential impact of SearchGPT on its business.

Reuters had earlier reported on OpenAI's plans around AI search in May.