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Sam Altman declared a CODE RED at OpenAI because they are falling behind the competition. Here's my breakdown. My take: GOOGLE has been in the messy internet data game for a long time. What is search? Search is UX, first and foremost. Search cares about salience, recall, relevance. OpenAI,...

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David Friedberg: OpenAI’s rise is the best thing that ever happened to Google “No greater blessing has ever happened to Alphabet than OpenAI's rise.” “Not only did it create the foil for Google in the monopoly sense, but it also took the attention away from Google, focused it on OpenAI, and that attention fundamentally damaged OpenAI's strategic product capabilities because they had to start to be so much more careful about what they said and how they said it.” “And the opposite was happening at Google at the same time, which is Larry, Sergey and Sundar being given permission by the board to take risks, to go hard, to figure this out. And boom! It's amazing how the horse race has changed.” “The reason Google didn't lean into AI for years, even though they had the technology, is because they were nervous about cannibalization to search, they were nervous about the quality of the product, they didn't want to release things too early, and then they changed their posture.” “Which, by the way, I would argue is the opposite at OpenAI in the last couple months.” “I used to use advanced voice on ChatGPT all the time. I cannot stand it anymore. I do not use it.” “It has basically hedged away all of the value because it tries to be polite, it tries to make sure that it's giving you warnings all the time.” “It doesn't want to give you data because it's scared that it might give you the wrong data.” “OpenAI has been acting like an incumbent fearful of losing market share and fearful of getting attacked in the media and attacked by consumers for saying the wrong thing.” “And so they've taken this kind of defensive posture that I think has fundamentally damaged the product and the brand.”

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