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%.



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
TT

Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.