USA NEWS – OpenAI, the company behind the popular AI chatbot ChatGPT, has made a unique request to its investors: to avoid funding five specific AI startups. This revelation, reported by Reuters, highlights the intense competition within the AI industry and OpenAI’s strategic efforts to maintain its market dominance.

The list of companies that OpenAI has asked its investors to avoid includes prominent rivals like Anthropic, xAI (founded by Elon Musk), and Safe Superintelligence (SSI), a new venture led by OpenAI co-founder Ilya Sutskever. These companies are all racing to develop large language models, similar to ChatGPT, which require significant funding.

In addition to these AI research companies, OpenAI has also expressed concerns about Perplexity and Glean, both AI application firms. This suggests that OpenAI is expanding its focus beyond research and development to include commercial applications, such as AI search and enterprise search tools.

OpenAI’s request, while not legally binding, demonstrates its strategic approach to securing exclusive commitments from its investors. By limiting competition, OpenAI aims to protect its market position and potentially gain access to more favorable terms in future funding rounds.

This move is not entirely unprecedented in the venture capital world, but it is unusual to see such a specific list of companies. Most investors generally avoid investing in direct competitors of their portfolio companies to mitigate reputational risks. However, the blurring of lines between late-stage investors, such as SoftBank and Fidelity, who have invested in both xAI and OpenAI, complicates this dynamic.

While OpenAI’s request does not apply to its past investors or their existing investments, it could have implications for future fundraising efforts. The five companies on the list may face challenges in securing funding from investors who are also backing OpenAI.

The news of OpenAI’s request has sparked discussions about the competitive landscape of the AI industry and the potential implications for innovation and market dynamics. As the race to develop advanced AI technologies continues, it remains to be seen how this strategic move will impact the future of the field.