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OpenAI Faces Multi-Front Attacks from Big Tech Giants and Rivals
AinvestSunday, Jul 13, 2025 7:57 pm ET
1min readOpenAI, valued at $300 billion, faces attacks from Big Tech companies like Meta, Google, and Amazon. The startup's 500 million users and $40 billion funding deal make it a prime target. OpenAI CEO Sam Altman has faced poaching attempts, burnout among engineers, and pressure to update its flagship product, ChatGPT. Despite setbacks, OpenAI remains a leader in the AI race.
Title: OpenAI Faces Multi-Front Attacks from Big Tech CompaniesOpenAI, valued at $300 billion, is under intense pressure from major tech companies such as Meta, Google, and Amazon. The AI startup, with its flagship product ChatGPT boasting 500 million users, secured $40 billion in funding, making it a prime target for competitors.
The latest challenges for OpenAI include poaching attempts by Meta, burnout among engineers, and pressure to update ChatGPT. Meta has been actively recruiting OpenAI staffers with "giant signing offers," including $100 million bonuses [1]. Despite these efforts, OpenAI CEO Sam Altman maintains that his team is dedicated to their work [1].
OpenAI also faced setbacks with its deal with Windsurf, an AI coding assistant startup. The deal, valued at about $3 billion, collapsed due to tensions with Microsoft, OpenAI's largest investor [1]. Microsoft considers Windsurf a direct competitor to its Copilot product.
The startup has also delayed the release of its new model, citing the need for additional safety tests and high-risk area reviews [1]. This delay comes amidst increased competition from rival chatbot makers like xAI, which has seen success with its recent updates.
Despite these challenges, OpenAI remains a leader in the AI race. The company's resilience and commitment to innovation continue to make it a significant player in the tech landscape.
References:
1. [1] https://africa.businessinsider.com/news/dollar300-billion-500-million-users-and-no-time-to-enjoy-it-the-sharks-are-circling/0d7tfrc
2. [2] https://www.businessinsider.com/openai-competition-big-tech-meta-talent-windsurf-amazon-movie-deepmind-2025-7
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