Brad Gerstner, CEO and founder of Altimeter Capital, recently spoke at the Madrona IA Summit in Seattle, where he discussed his involvement in OpenAI’s record $6.6 billion fundraising round. Altimeter was one of the investors in the round, which was led by Thrive Capital with Microsoft, Nvidia, SoftBank, Khosla Ventures, Fidelity, and MGX. During a conversation with Madrona’s Matt McIlwain at the event, Gerstner shared his thoughts on the future of OpenAI and the importance of transparency and accountability in publicly traded companies.
Gerstner expressed his belief that companies do not need to reach $1 billion in revenue before going public and called the idea “total nonsense.” He hopes and expects that the next step for OpenAI would be to go public, allowing retail investors in America to share in the upside created by AI technologies. He referred to OpenAI as the most important AI company in the U.S., after Nvidia, and highlighted the importance of subjecting the company to the scrutiny, transparency, and accountability that the public markets bring.
In order for OpenAI to go public, it would first need to split from its nonprofit structure and become a standalone for-profit company. Gerstner expressed confidence in the caution taken by the OpenAI board, CEO Sam Altman, and CFO Sarah Friar in slowing down the release of new models to build relationships with key stakeholders in Washington, D.C. He noted that OpenAI’s approach to new model releases demonstrates their awareness of the potential social disruption and job loss that could accompany advancements in AI technology.
During the session, Gerstner also commented on Microsoft’s Copilot, stating that as a consumer brand, it will face challenges against OpenAI’s ChatGPT. However, he mentioned that Microsoft CEO Satya Nadella owns a significant portion of ChatGPT, which could benefit Microsoft in the long run. Mustafa Suleyman, the CEO of Microsoft AI, also spoke at the event, further highlighting the significance of AI technology and its impact on various industries.
Overall, Gerstner’s discussion at the Madrona IA Summit shed light on the transformative potential of AI technologies and the importance of responsible and ethical development and deployment of AI. His perspective on the future of OpenAI, the role of public markets in promoting transparency in AI companies, and the challenges and opportunities facing companies like Microsoft in the AI space provided valuable insights into the evolving landscape of artificial intelligence and its implications for businesses and society as a whole.
