Comment by Zagreus2142

I think that MIT study of 95% of internal AI projects failing has scared off a lot of corporations from risking time in it. I think they also see they are hitting a limit of profitable intelligence from their services. (with the growth in inelegance the past 6–8 months being more realistic, not the unbelievable like in the past few years)

I think everyone is starting to see this as a middle man problem to solve, look at ERP systems for instance when they popped up it had some growing pains as an industry. (or even early windows/microsoft 'developers, developers, developers' target audience)

I OpenAI see it will take a lot of third party devs to take what OpenAI has and run with it. So they want to build a good developer and start up network to make sure that there are a good, solid ecosystem of options corporations and people can use AI wise.

I think it’s more like Open AI has the name to throw around and a lot of credibility but not products that are profitable. They are burning cash and need to show a curve that they can reach profitability. Getting 15 people with 15 ideas they can throw their weight behind is worth a lot

> I can't imagine Softbank or Microsoft is happy about their money being funneled into something like this

Imagining one negative spin doesn’t an imagination make. Imagine harder.

Without putting my weight behind them, here's some counterarguments:

- OpenAI needs talent, and it's generally hard to find. Money will buy you smart PhDs who want to be on the conveyer belt, but not people who want to be a centre of a project of their own. This at least puts them in the orbit of OpenAI - some will fly away, some will set up something to be aquihired, some will just give up and try to join OpenAI anyway

- the amount of cash they will put into this is likely minuscule compared to their mammoth raises. It doesn't fundamentally change their funding needs

- OpenAI's biggest danger is that someone out there finds a better way to do AI. Right now they have a moat made of cash - to replicate them, you generally need a lot of hardware and cash for the electricity bill. Remember the blind panic when DeepSeek came out? So, anything they can do to stop that sprouting elsewhere is worth the money. Sprouting within OpenAI would be a nice-to-have.

I don't think it's about money, they don't invest anything. They gather data about "technical talent" working on AI related ideas. They will connect with 15 of these people to see if they can build it together.

It's possible that a single senior employee just wanted to do this and it doesn't cost that much and their manager was like "sure"

> OpenAI has more money than it can invest productively

I don't think there is any money given, except travel costs for first and last week.

I mean, how much money are they throwing at this? I doubt it approaches anything close to a percent of the cash they have on hand.