How ChatGPT maker OpenAI is fuelling a generative AI war

Last year in November, little known Artificial Intelligence research lab OpenAI based in San Francisco unveiled ChatGPT, taking the tech world by storm. Based on a large language model (LLM), the chatbot uses a simple text prompt for human-like responses.

It can answer complex questions, write codes, songs and even poetry. The ChatGPT rage was such that microblogging site Twitter was flooded with memes and threads on how to use the chatbot. Social media influencers on YouTube started making tutorials on how to write a ChatGPT ‘prompt’ to add to the vitality of the technology.

On Friday, OpenAI launched ChatGPT Plus subscriptions in India at $20 per month just days after the research platform unveiled a new version of the technology that powers its chatbots. OpenAI which reportedly has around 375 employees launched what it calls GPT-4, the latest iteration of the technology that powers ChatGPT with new features.

Google vs Microsoft: The race between Google and Microsoft to adopt and embed generative AI tools in their products is rapidly picking up pace. On Tuesday, Google announced a “magic wand” for its collaboration software that can draft virtually any document, as the online search giant integrates its solutions for developers, businesses and governments with a range of generative AI, Thomas Kurien, chief executive of Google Cloud said during an exclusive global media roundtable attended by ET.

Soon after, Microsoft unveiled AI office Copilot in a fast-moving race with Google as it previewed a new AI “Copilot” for Microsoft 365. The Redmond, Washington-based company, outpacing peers through investments in ChatGPT’s creator OpenAI, also showcased a new “business chat” experience that can pull data and perform tasks across applications on a user’s written command, Reuters reported.

Big rejig at TCS: CEO Rajesh Gopinathan unexpectedly resigns

Chandra will remain a mentor and guide: outgoing TCS CEO Rajesh Gopinathan | Rajesh Gopinathan, the outgoing CEO of TCS, said he would “continue to have a great relationship” with Tata Sons Chairman N Chandrasekaran, irrespective of whether “I am with the group or outside of it”, in an emphatic dismissal of all speculation surrounding his unexpected resignation on Thursday. Read the full interview here.

Meet TCS’ new boss K Krithivasan: soft spoken and non-flashy | K Krithivasan, who at 58 became the oldest candidate to become chief executive officer of the country’s largest software exporter Tata Consultancy Services on Thursday, is a calm but firm leader, according to his colleagues and friends. The low-key soft-spoken executive has arguably never been in the limelight – hardly ever seen at the company’s quarterly earnings or annual analyst meets. Before Thursday that is! Read the full profile here.

TCS looked at four candidates, unanimous on K Krithivasan for top job | The board of Tata Consultancy Services (TCS) considered four internal candidates — including chief operating officer N Ganapathy Subramaniam — before choosing K Krithivasan for the top job at India’s largest software exporter, said three people familiar with the discussions at the board level.

Not the best time for leadership transition at TCS: experts | The leadership transition at TCS could prove to be challenging for the country’s largest software exporter as it comes at a time when the industry is battling macroeconomic uncertainty and geopolitical issues have significantly slowed down growth, experts said. The CEO designate, K Krithivasan will have to navigate macroeconomic challenges and demonstrate significant value addition at a time when digital and offshoring models introduced by his predecessors have reached maturity and customers are questioning their tech spends, they said.

TCS CEO Rajesh Gopinathan unexpectedly resigns, K Krithivasan to take over: K Krithivasan is set to become the next CEO of Tata Consultancy Services (TCS), India’s largest IT services company. He will succeed Rajesh Gopinathan, who unexpectedly resigned as chief executive and managing director on Thursday.

Addressing a presser a day later Krithivasan said: “It is a continuum. It is not that we come up with a new strategy or no new set of priorities at TCS as every CEO changes.” Krithivasan, who is moving to Mumbai from TCS’ Chennai office, added, “We have a core set of beliefs focussing on employees and customers. It is the most important engine that drives our growth.”

Infosys top-level exits a short-term risk, say analysts | The two senior level exits from India’s second largest software firm Infosys in the last six months have been flagged by analysts as a “short-term” risk to the company. Infosys president Mohit Joshi, and COO and president Ravi Kumar S quit the firm recently.

ETtech Exclusives

After notices, e-pharmacies look to make a case to government: Over a dozen online pharmacies are seeking to explain their stance to health ministry officials over show-cause notices issued to them. The notices were over sale of drugs in alleged violation of norms. “There is an impasse between the government and industry on several matters. The government has done its own analysis of the sector and its business model, and companies are looking to have conversations,” sources told us.

EV makers push for at least 50% hike in FAME II subsidy: Even as uncertainty looms over the future of FAME subsidies for electric two-wheelers, three-wheeler EV makers have sought an increase in subsidies to at least 50%, multiple industry sources told us. Several industry bodies have made representations to the Ministry of Heavy Industries (MHI) on this demand, said a senior government official, adding: “The MHI arranged stakeholder consultation and is currently considering the same.”

IT hardware companies flag PLI’s investment clause amid unused capacity: IT hardware manufacturers such as Foxconn, HP and Dixon Technologies have urged the government to drop the fresh investment clause proposed in the revised production-linked incentive (PLI) scheme in the works for the industry.

SVB collapse: India impact

Startups move fast to transfer funds out of Silicon Valley Bank: Indian startups with funds in the now shut Silicon Valley Bank (SVB) are finalising ways to transfer their money elsewhere. Startups ET spoke with said the panic over their deposits getting stuck has now settled. They are working with Indian as well as international banks to move the funds out of SVB, which until last week was one of the most-popular US banks with startups.

Government urges startups to bank locally: Earlier this week, the minister of state for electronics and information technology Rajeev Chandrasekhar led a virtual meeting with more than 450 startup founders and investors to take stock of the impact of SVB’s closure. The IT ministry pitched the resilience of Indian banks to startups, and urged them to bank locally.

Indian startups had deposits worth $1 billion in SVB, says MoS IT | Indian startups had deposits worth $1 billion in the beleaguered SVB, Chandrasekhar informed while addressing a Twitter Spaces session, on Thursday. “I had empirically and anecdotally calculated that there was more than a billion dollars of startup capital as deposits – according to some this is a conservative estimate – in Silicon Valley Bank, attributable to Indian startups,” he said.

ET Ecommerce Index

We’ve launched three indices – ET Ecommerce, ET Ecommerce Profitable, and ET Ecommerce Non-Profitable – to track the performance of recently listed tech firms. Here’s how they’ve fared so far.

Tech layoffs

Facebook-parent Meta fires 10,000 more: Facebook-parent Meta Platforms said on Tuesday it would slash 10,000 jobs in a second round of mass layoffs. The fresh layoff is in addition to the 11,000 employees or 13% of its global workforce Meta had sacked in November last year in a bid to cut costs.

SaaS firm Freshworks undertakes fresh round of layoffs: Nasdaq-listed software firm Freshworks has undertaken a fresh job cut in a bid to improve operational and organisational efficiencies.

Y Combinator shuts late-stage investment fund, lays off employees: Silicon Valley startup accelerator Y Combinator (YC) announced that it will wind down its late-stage investment fund. YC said in a blog post that late-stage funding was different from early stage and was becoming a distraction from what the accelerator aimed to do.

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ETtech Done Deals

ADIA signs $500 million cheque for 10% stake in Lenskart: Abu Dhabi Investment Authority (ADIA) and Lenskart, has signed a definitive agreement for a $500 million investment by the Gulf Sovereign wealth fund (SWF).

PhonePe racks up additional $200 million from Walmart: Digital payments major, PhonePe on Friday said it has picked up an additional $200 million in primary capital from its parent Walmart.

Startups see rise in funding this week led by Lenskart, PhonePe | The Indian startup ecosystem saw a jump in funding for the period between March 11 and March 17, 2023, compared to last year at the same time, largely due to late-stage investments in omni-channel eyewear company Lenskart and Walmart-owned fintech PhonePe.

Other top stories this week

Flipkart gets Rs 1,700 crore tax relief from Bengaluru bench of tax tribunal: Flipkart received a tax relief of Rs 1,700 crore after the Bengaluru bench of the Income Tax Appellate Tribunal (ITAT) allowed an appeal by the ecommerce company to permit tax deductions on its expenses related to employee stock option (Esop) and marketing expenses, according to sources.

Centre to empower PIB to flag fake news on government bodies: The government will soon come up with rules that will empower the government’s Press Information Bureau (PIB) to flag inaccurate and fake news about government bodies.