OpenAI Partners with the UK Government to Advance AI Development
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Key Terms of the Deal
As part of this agreement, OpenAI will expand its London office, its first international location established two years ago. This expansion will involve growing its local research and engineering teams.
Further, OpenAI will share technical details with the UK's AI Safety Institute. This will help the government better understand what AI can do and what risks it might pose.
The deal also aims to explore how AI can be used in areas like justice, defense, security, and education in the UK. All uses will follow strict UK rules and will aim to improve public services and make them more efficient.
The initiative aligns with the UK government's plan to invest £1 billion in computing infrastructure for AI development to increase public compute capacity twentyfold over the next five years. This includes the creation of AI Growth Zones, regional hubs designed to attract billions in private investment and create high-paying tech jobs.
JPMorgan Initiates Coverage on OpenAI
JPMorgan (JPM) recently initiated coverage on private companies, including OpenAI. The firm said OpenAI has grown from a small research lab into a major industry player and the third most valuable private company globally. The firm believes ChatGPT's strong brand and early lead could help OpenAI tap into a $700 billion market by 2030.
The firm noted that while OpenAI remains the best-capitalized private AI startup, profitability is not expected until 2029, leaving investors to weigh growth against long-term sustainability.
Further, JPM believes that OpenAI must expand revenue sources quickly to justify its steep valuation, currently 27x projected 2025 revenue, above the industry average.
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