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OpenAI executives say they will introduce a new artificial intelligence model for “high-value professional work” as the company faces heightened competition with rival Anthropic in attracting corporate customers to adopt AI assistants in their workplaces.
OpenAI is strategically shifting its focus from widely used, non-paying consumer applications like ChatGPT to more lucrative business-oriented AI products. This pivot is driven by the need for profitability, as evidenced by its CFO, Sarah Friar, utilizing the chatbot for internal tasks such as summarizing emails and Slack messages, indicating a clear direction towards enterprise solutions.
OpenAI is set to launch a new, advanced artificial intelligence model, codenamed 'Spud,' specifically tailored for 'high-value professional work,' boasting stronger reasoning and more reliable output. This development is a direct response to escalating competition with rival Anthropic, which recently introduced its powerful Claude Mythos and Opus 4.7 models, as both companies fiercely contest for corporate clients adopting AI assistants.
Despite ChatGPT's massive user base, 95% do not generate revenue, leading to significant computing costs and unprofitability for OpenAI and Anthropic. To counter this, OpenAI is discontinuing some consumer initiatives, such as the Sora AI video generator, to reallocate resources. The company aims for business customers to contribute 50% of its sales by the end of the year, a substantial increase from 20% in 2024, to secure financial viability and prepare for potential public trading.
OpenAI's strategic shift is underscored by the appointment of Denise Dresser as its first chief revenue officer, tasked with cementing OpenAI's position as the leading platform for corporate AI agents. This move intensifies rivalry with Anthropic, which differentiates itself by prioritizing AI safety and has gained significant traction with its Claude model, even amidst political disputes concerning AI use in military applications.
Both OpenAI and Anthropic face considerable financial pressure due to unprofitability and a tight competition for market share, with Anthropic showing faster growth. While OpenAI emphasizes its 'structural advantage' and a positive message of broad access and safeguards, critics like Ed Zitron warn of a potential 'subprime AI crisis.' Concerns include high operating costs, the imposition of rate limits on non-premium users, and the long-term financial stability of these AI companies, which could impact smaller startups reliant on their tools.