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Executives share vision of turning ChatGPT into operating

system

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Newly announced partners like Spotify ( SPOT ), Mattel ( MAT ) saw stock

bump

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OpenAI's ambitions have drawn investor concerns about AI

bubble

(Adds executive comments about operating system to paragraphs

5-8, partners' shares in paragraph 9)

By Deepa Seetharaman and Kenrick Cai

SAN FRANCISCO, Oct 6 (Reuters) - OpenAI touted new

partnerships to incorporate its AI products across diverse

industries at its developer conference on Monday, aiming to

drive the strong momentum it has enjoyed among consumers to its

enterprise business.

"You should expect a huge focus from us on really leaning

into enterprise," CEO Sam Altman told journalists at a press

conference following his keynote at San Francisco's Fort Mason

Center.

The company revealed a flurry of collaborations with

companies including Spotify ( SPOT ), Zillow and Mattel ( MAT )

while debuting a set of fresh tools to help developers

build new applications.

That included a way for other apps to plug into ChatGPT and

allow a user to ask questions or perform tasks in the app. One

engineer gave a live demo showing how someone could use ChatGPT

to generate a readymade playlist in Spotify ( SPOT ), or ask Zillow to

narrow down a list of properties to just show those with three

bedrooms and three bathrooms.

Executives said this was the start of a broader vision of

transforming ChatGPT into a central portal where users can

access a broader range of services.

"What you're going to see over the next six months is an

evolution of ChatGPT from an app that is really, really useful

into something that feels a little bit more like an operating

system," ChatGPT head Nick Turley said.

Greg Brockman, OpenAI's president, underscored that OpenAI

was "committed to building the best enterprise platform."

News of OpenAI's partnerships led shares of some of its

partners like Zillow and Figma ( FIG ) to climb initially, a

sign of how the ChatGPT maker's imprimatur has become a way to

legitimize companies' positioning in AI. Earlier on Monday,

shares of AMD surged more than 34% after it signed a

deal supplying chips to OpenAI.

Spotify ( SPOT ) said in a press release about its partnership that

it would not share user data with OpenAI to train models. Asked

if the same policy applied to the other deals, Turley said it

would abide by the preferences users selected in their data

settings.

OpenAI had always planned to target the enterprise market,

but its AI models were not previously ready for the higher

demands of business-use cases, Altman said.

"We needed to let the models get better. The models are

there now," he said, adding that the company had selected "a few

active early partnerships."

Brockman said the work that went into its models'

self-claimed gold medal performance at the International

Mathematical Olympiad would generate benefits for enterprises in

other ways.

OpenAI and other tech giants such as Alphabet and

Microsoft ( MSFT ) have courted enterprise AI deals to help

justify massive spikes in spending, though the returns across

the industry have so far failed to match investment, recent

surveys showed.

The ChatGPT-maker outlined ambitious new plans in the last

month to build $1 trillion or more of computing capacity and

launched a viral AI-video-generating app called Sora, which has

shot to the top of Apple's app rankings.

All this has made OpenAI a massive money-losing operation to

date. Altman said it was "not in my top 10 concerns, but we

obviously someday have to be very profitable."

Monday's moves are the latest in a stream of announcements

for OpenAI, which sparked the modern AI boom with the launch of

ChatGPT about three years ago.

Many of Altman's ambitions are bold and expensive even by

Silicon Valley standards, sparking some concerns among tech

investors about whether or not AI investments are a bubble.

Altman said during the question-answer session that many

areas of the AI industry are "kind of bubbly," but that "real

value will get created."