OpenAI and the Large Language Model Market

  • Reference: SM-1742-E

  • Year: 2023

  • Number of pages: 25

  • Geographic Setting: Estados Unidos

  • Publication Date: May 29, 2023

  • Source: IESE (España)

  • Type of Document: Case

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The case study centered on Sam Altman, the CEO of OpenAI, as he faced critical decisions regarding the company's future direction in the rapidly growing large language model (LLM) market. With the success of GPT-4, OpenAI became a prominent player in the industry, and Altman had to develop a comprehensive strategy to maintain this position while navigating a complex array of challenges. The case explored key issues such as competitive dynamics, fostering an application development ecosystem, ethical considerations, regulatory challenges, balancing profitability with OpenAI's mission, and talent acquisition and retention. By examining these topics, students will gain insights into the strategic decision-making process and factors that influence the direction and success of a company operating in a rapidly evolving and competitive market. This case can be particularly relevant for courses related to technology, entrepreneurship, business strategy, and ethics.

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