CareCredit Women's Wellness Index July 2024 Banner

Companies Diversify AI Sources After OpenAI’s Management Upheaval

Companies are reportedly diversifying their artificial intelligence sources after OpenAI’s period of management upheaval in November.

For some customers, the events highlighted the risks of being too dependent on one company’s technology and prompted them to protect themselves from potential disruptions, The Wall Street Journal (WSJ) reported Friday (Jan. 5).

Executives at companies that use AI software have started exploring alternative options to mitigate potential risks, according to the report.

For example, Walmart held meetings with its internal tech team members to emphasize the importance of using the retailer’s internally developed platform, the report said. The approach allows Walmart to incorporate various AI models, including OpenAI’s, into its software, ensuring that its AI capabilities remain intact even if issues arise with a particular provider.

Other companies have also taken steps to shelter themselves from potential fallout. When the leadership turmoil at OpenAI began, Doug Merritt, CEO of cloud networking company Aviatrix, immediately checked with his tech teams to ensure that his company’s AI tools were not solely dependent on OpenAI, per the report. While Aviatrix uses OpenAI’s technology for certain features, it also relies on models from other companies, reducing its ties to a single provider.

OpenAI has stated that it did not lose any customers during the period of management chaos, according to the report. The company’s chief operating officer, Brad Lightcap, told the WSJ that OpenAI has “deep respect for the unique needs and aspirations of each customer.”

However, the company’s competitors have seized the opportunity to attract wary customers, the report said. Amazon Web Services highlighted its AI offerings, including alternatives to OpenAI’s models, during its November convention in Las Vegas. The move was seen as a veiled swing at both OpenAI and its largest backer, Microsoft.

November’s events at OpenAI reinforced a trend that was already emerging in the AI industry, per the report. Companies have been seeking to license AI software from multiple vendors, opting for cheaper and more task-specific tools compared to OpenAI’s powerful and relatively expensive offerings.

Forty percent of executives surveyed by Google said that there is an urgent need to adopt generative AI, according to the PYMNTS Intelligence study “Understanding the Future of Generative AI.”

For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.