The real story of the OpenAI debacle is the tyranny of big tech | Sarah Radsch
The recent events surrounding OpenAI, including the firing of its CEO and co-founder Sam Altman, Microsoft’s offer to poach its top executives and staff, and Altman’s eventual return, highlight the power dynamics within the AI ecosystem. These developments should serve as a wake-up call for us to confront the dangers of monopoly capitalism.
OpenAI has been at the forefront of developing advanced large-language models and groundbreaking artificial intelligence products. It has brought generative AI into the mainstream and sparked widespread discussions about the risks associated with AI. However, amidst the spotlight on OpenAI, it is Microsoft that has played a leading role in this unfolding drama.
Microsoft swiftly swooped in to hire the ousted executives and establish a new AI research division for Altman to lead. Reports suggest that hundreds of staff were ready to follow them to Microsoft. While this seemed like a major win for Microsoft, Altman ultimately returned to OpenAI under new board leadership. This arrangement allows Microsoft to maintain its advantageous relationship without shouldering the costs of employee expenses or research and development. It’s a win-win situation for Microsoft.
The underlying issue in this theatrical saga revolves around power. Companies that control the resources necessary for developing advanced AI systems have a significant advantage. They also hold the authority to decide how to balance current harms against future risks and shape the trajectory of this technology.
The enormous resources required for developing, training, and running cutting-edge AI models incentivize companies to pursue market dominance. As per a recent report by the Open Market Institute, they achieve this by leveraging partnerships, investments, and acquisitions to gain control and access.
Microsoft, in particular, has had a substantial impact on this drama. The company has invested over $13 billion in OpenAI since 2019, acquiring a 49% stake in the company and three-quarters of OpenAI’s profits. Additionally, Microsoft ensured its position as OpenAI’s sole cloud provider, solidifying its control over the computational costs of running generative AI products.
Although the partnership between OpenAI and Microsoft is often framed as mutually beneficial, it bears all the signs of what is referred to as a killer acquisition. This acquisition grants Microsoft unparalleled access to a tech unicorn with tremendous value.
Furthermore, the recent reshuffling of board members within OpenAI indicates a potential tightening of the partnership. The new board members seem to align more with the fast-paced, move fast, break things approach of the tech sector. This includes individuals with deep roots in Silicon Valley and Larry Summers, a former treasury secretary known for applying free-market theory where it didn’t fit the circumstances. Summers has cautioned against regulators using anti-trust measures to address economic concentration.
Microsoft is one of the few gatekeeper firms that possess the necessary computing power, data access, and technical expertise to develop advanced AI systems. This control empowers these companies to dictate terms, fees, and even protect against potential competitors. For instance, Microsoft limited the availability of OpenAI’s API to other search engines and threatened to cut off access to its internet search data if rivals used it to develop their own AI chat products.
Furthermore, Microsoft charges higher fees to other cloud providers for purchasing and running its software outside of Azure. This not only makes switching difficult and expensive but also discourages innovation since data often remains non-interoperable across systems.
These actions by Microsoft raise concerns for policymakers focused on AI safety, governance, and innovation. However, amidst efforts to ensure responsible and safe AI, the harms and risks associated with concentrated power in the generative AI ecosystem have been largely ignored or sidelined.
Big tech companies justify their rapid and sometimes reckless deployment of generative AI by emphasizing the need for speed over safety to remain competitive, particularly in comparison to China. This narrative has effectively shifted attention away from the dangers posed by concentration at key points in the AI value chain. It also diverts attention from the existing harms perpetuated by platforms, including disinformation, manipulation, addiction, and surveillance capitalism.
If we fail to recognize the significance of the unfolding drama surrounding OpenAI and the tyranny of big tech, we will miss a critical opportunity to restructure the AI ecosystem. It is crucial to break up concentrations of power that hinder innovation, distort our information systems, and pose threats to national security.
In conclusion, the OpenAI debacle serves as a stark reminder of the power dynamics within the tech industry. Microsoft’s involvement highlights the monopolistic tendencies of big tech companies and the risks associated with their control over critical aspects of the AI ecosystem. It is imperative that we address these issues to ensure a more balanced and ethical development of AI technology.
