OpenAI Unveils New AI Model as Competition Heats Up 

The OpenAI logo is seen on a mobile phone in front of a computer screen displaying output from ChatGPT, March 21, 2023, in Boston. (AP)
The OpenAI logo is seen on a mobile phone in front of a computer screen displaying output from ChatGPT, March 21, 2023, in Boston. (AP)
TT

OpenAI Unveils New AI Model as Competition Heats Up 

The OpenAI logo is seen on a mobile phone in front of a computer screen displaying output from ChatGPT, March 21, 2023, in Boston. (AP)
The OpenAI logo is seen on a mobile phone in front of a computer screen displaying output from ChatGPT, March 21, 2023, in Boston. (AP)

ChatGPT maker OpenAI said on Monday it would release a new AI model called GPT-4o, capable of realistic voice conversation and able to interact across text and image, its latest move to stay ahead in a race to dominate the emerging technology.

New audio capabilities enable users to speak to ChatGPT and obtain real-time responses with no delay, as well as interrupt ChatGPT while it is speaking, both hallmarks of realistic conversations that AI voice assistants have found challenging, the OpenAI researchers showed at a livestream event.

"It feels like AI from the movies ... Talking to a computer has never felt really natural for me; now it does," OpenAI CEO Sam Altman wrote in a blog post.

Microsoft-backed OpenAI faces growing competition and pressure to expand the user base of ChatGPT, its popular chatbot product that wowed the world with its ability to produce human-like written content and top-notch software code.

At the livestream event, OpenAI researchers showed off ChatGPT's new voice assistant capabilities. In one demo, ChatGPT used its vision and voice capabilities to talk a researcher through solving a math equation on a sheet of paper.

In another demo, researchers showed the GPT-4o model's capability of real-time language translation.

OpenAI's demonstrations verged on science-fiction, with ChatGPT and its interlocutor at one point engaging in coquettish banter. The OpenAI researcher told the chatbot he was in a great mood because he was demonstrating "how useful and amazing you are."

ChatGPT responded: "Oh stop it! You're making me blush!"

Altman posted on X after the demo, "her," in what appeared to be a reference to the so named 2013 film by Spike Jonze about a man falling in love with his AI assistant, voiced by Scarlett Johansson.

OpenAI's chief technology officer, Mira Murati, said at the event that the new model would be offered for free because it is more cost-effective than the company's previous models. Paid users of GPT-4o will have greater capacity limits than the company's free users, she said. The GPT-4o model will be available in ChatGPT over the next few weeks, the company said.

In addition, free ChatGPT users now have access to a "browse" feature that enables ChatGPT to display up-to-date information from the web, Murati told Reuters after the event. The company does not intend to make money off free users through selling ads, Murati said.

Shortly after launching in late 2022, ChatGPT was called the fastest application ever to reach 100 million monthly active users. However, worldwide traffic to ChatGPT's website has been on a roller-coaster ride in the past year and is only now returning to its May 2023 peak, according to analytics firm Similarweb.

OpenAI made the announcements a day before Alphabet is scheduled to hold its annual Google developers' conference, where it is expected to show off its own new AI-related features. Reuters reported last week that OpenAI planned to announce an AI-powered search product, citing sources. But the company decided to delay the search product announcement, according to one source familiar with the matter.

Shares of Alphabet were down 0.4% on Monday afternoon, after falling nearly 3% earlier in the day. Microsoft shares were down 0.2%.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
TT

Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.