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According to market analysts, investors could lose interest in AI as the bubble seemingly fades away as concern and pressure for profits mount. This could leave startup firms like OpenAI high and dry with insufficient resources to fund their sophisticated advances.

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To this end, ChatGPT continues to reign over Copilot on mobile, with data indicating that the launch of OpenAI's magical GPT-4o model led to the biggest spike in downloads and revenue. Microsoft's latest update for Copilot isn't making the situation better. Many users hate the new update, citing a degraded user experience. Even Microsoft staffers say the update is a step backward, absolutely ruining Copilot's user experience.

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After what might have seemingly been referred to as a mass exodus of high-profile executives from OpenAI, the ChatGPT maker might finally be over the hump. Earlier this week, Meta's former AR glasses lead, Caitlin Kalinowski, announced she was joining the AI firm to support its robotics and consumer hardware efforts.

Despite the issues, OpenAI is strategically laying its foundation in hardware. In September, former Apple Chief Design Officer Jony Ive disclosed he was working closely with OpenAI to develop a flagship device that could potentially take on Apple and Samsung in the mobile landscape.

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Kalinowski brings a wealth of experience and expertise in hardware development to OpenAI. In her previous role, she spearheaded the development of Meta's cutting-edge Orion augmented reality headsets. The company unveiled the AR glasses at its annual developer conference, Meta Connect. While details of the hardware's official release date remain slim, the company reportedly spent up to $10,000 to develop a pair.

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As such, transitioning to a for-profit venture could save OpenAI from outsider interference and hostile takeovers. However, the move could be deterred by reservations from staffers, the government, regulators, and the board of directors. The ChatGPT maker is in the corridors of justice, battling a lawsuit filed by former co-founder Elon Musk, citing "a stark betrayal of the founding mission," fake humanitarian mission, and alleged involvement in racketeering activities.

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Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You'll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.

Windows Central is part of Future US Inc, an international media group and leading digital publisher. Visit our corporate site.

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Interestingly, a leaked report suggested that the top complaint made by Copilot users to Microsoft's AI division is that it doesn't work as well as ChatGPT. Microsoft categorically indicated that ChatGPT isn't better than Copilot; users are just not using it as intended. The tech giant shifted the blame to a lack of proper prompt engineering practices but has since launched Copilot Academy to remedy the situation and equip users with the relevant skills.

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OpenAI has gained popularity, especially after it launched ChatGPT in November 2022. Admittedly, other competitors in the landscape, including Microsoft, have seemingly struggled to drive growth and traffic toward its Copilot AI service. Experts and market analysts speculate that Copilot's dismal performance could be linked to Microsoft's poor promotion practices.

OpenAI is under pressure to transform into a for-profit venture in 2 years or risk refunding the money raised during its latest round of funding to investors. Experts and market analysts predict Microsoft could buy OpenAI within the next three years as it burns through large sums of money chasing the AI hype.

Recently, the ChatGPT maker was on the brink of bankruptcy, with projections of making $5 billion in losses within the next few months. However, investors, including Microsoft and NVIDIA, participated in its latest round of funding, raising $6.6 billion, ultimately pushing its market cap to $157 billion.

"In my new role, I will initially focus on OpenAI’s robotics work and partnerships to help bring AI into the physical world and unlock its benefits for humanity."

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