Tesla Rival Figure AI Ends Collaboration With OpenAI After 'Major Breakthrough'

In a surprising turn of events, Figure AI, a Bay Area-based humanoid robotics firm, has announced its decision to terminate its partnership with OpenAI. The company, which has been working with OpenAI to develop next-generation AI models for humanoid robots, cited a "major breakthrough" in its in-house AI development as the reason for the split. Figure AI's CEO, Brett Adcock, hinted at an upcoming revelation, stating that the company would unveil "something no one has ever seen on a humanoid" within the next 30 days.

The news comes as a surprise, given the cultural zeitgeist OpenAI has built by mainstreaming generative AI. However, Adcock suggested that the integration of OpenAI's AI models with Figure AI's hardware was challenging, as OpenAI's primary focus is not on embodied AI. Instead, the executive suggested that the proper solution is to build an end-to-end AI model focused on powering specific hardware.

Figure AI has raised significant funding, including a $675 million round that valued the company at $2.6 billion. The company has also announced a commercial agreement with BMW Manufacturing to bring general-purpose robots into automotive production. Figure AI's decision to focus on in-house AI development could give it a competitive edge in the humanoid robotics market, potentially attracting more customers and opening up new opportunities for partnerships and collaborations.

OpenAI, while a major backer of humanoid robotics, has also been exploring its own humanoid hardware. The company recently filed a trademark application involving humanoids, suggesting that it may be considering entering the humanoid robotics market. Figure AI's decision to develop in-house AI could prompt OpenAI to re-evaluate its strategy in this area, potentially leading to increased investment in AI models specifically designed for humanoid robots or the development of its own humanoid hardware.

In conclusion, Figure AI's announcement that it is exiting its deal with OpenAI to focus on in-house AI development could have significant implications for both companies. Figure AI's "major breakthrough" could give it a competitive edge in the humanoid robotics market, while OpenAI may need to re-evaluate its strategy in this area. As the humanoid robotics sector continues to evolve, it will be interesting to see how these two companies, as well as other players like Tesla, respond to these developments.