OpenAI’s GPT-4o: The AI Revolution Stranding Startups and Redefining Industries

Startups Left Stranded: The Impact of OpenAI's GPT-4o on the Industry

OpenAI has recently unveiled its latest multimodal model, GPT-4o (omni), capable of processing vision, audio, and text in near real-time. This release focuses extensively on human alignment, enhancing the AI’s ability to think and communicate like humans. While our previous critiques of OpenAI suggested a lack of product sense, the capabilities demonstrated in this new model have alleviated those concerns. However, OpenAI's aggressive expansion into the consumer market (2C) has left many startups, even those with significant funding, at risk. Here is a list of startups that are likely to be negatively affected by OpenAI’s new release, as the latest model combined with ChatGPT offers superior functionality. Tonight, at CTOL.Digital and ALPAI, 11 professional have joined a voting sessions on “Is this product area disrupted?”.

AI Tutors (Math, Languages)

OpenAI's latest demo showcased its tutoring capabilities, including live Spanish lessons and math tutoring via screen share. Experts at CTOL.Digital and ALPAI agree that startups in this sector will face significant challenges. Disruptive vs Nondisruptive Voting: 11:0.

• Cognii: AI-powered virtual learning assistant providing personalized feedback. Founded in 2013. $2.5M seed funding
• Century Tech: Online learning platform that adapts to each student's needs using AI. Over $18M funding.
• Knewton: Adaptive learning platform that personalizes education. Founded in 2008. $157.3M funding.
• Querium: AI-powered tutoring with personalized virtual tutors. Over $10M funding.
• Thinkster Math: Math tutoring app that adapts to student performance using AI. Over $5M funding.
• Elsa Speak: Language learning app with personalized pronunciation feedback. Founded in 2015. Over $40M funding.

AI Interview Coaches

OpenAI also demonstrated its model's ability to assist with interview preparation, a field where startups might struggle to compete. Disruptive vs Nondisruptive Voting: 11:0.

• VideoAI by Big Interview: Virtual interview coach providing feedback on various aspects of interview performance.
• HireVue: Video interviewing software using AI to analyze and score responses.
• MockRabbit: Mock interview app with real-time resume creation and job board features.

Live Translators

OpenAI’s live translation demo showed promising results in accuracy and low latency, though it’s not fully live yet. Startups in this space still have opportunities for innovation, especially in real time Language interpretation. Disruptive vs Nondisruptive Voting: 8:3

• KUDO: Cloud-based platform for multilingual web conferencing with real-time translation.
• Interprefy: Translation services for events, featuring automated speech-to-speech translation.
• Kotozna: Translation services for hotels, enabling communication with overseas guests.
• uCareLINGO: Voice translation app improving communication between patients and caregivers.
• Timekettle: Translation earbuds and devices providing real-time speech-to-speech translation.

AI Companionship (Girlfriends, Boyfriends, etc.), AI Roleplaying

This sector is particularly vulnerable as GPT-4o can simulate human interaction more realistically than text-based solutions offered by most startups. The only chance we see here is adult content. However, recent news showed OpenAI has been considering this direction as well. Disruptive vs Nondisruptive Voting: 11:0.

• Candy.ai: Virtual companions for personalized and immersive chats.
• Dream GF: AI-generated virtual girlfriend with customizable interactions.
• Kupid: AI-powered relationship app offering personalized virtual partners.
• Soulfun: AI companionship with human-like interactions for support.
• GPT Girlfriend: Advanced AI for lifelike virtual girlfriend experiences.
• POE.com: AI chatbot platform for dynamic and personalized interactions.
• Bloom: Platform for audio erotica with AI-generated roleplaying chatbots.
• OhCleo: Platform for interactive audio erotica experiences using AI.
• Soulmate: Provided AI companions; highlighted potential emotional attachment issues.

AI Search Engines

With ChatGPT now capable of browsing search engine results, leading AI search engines may become less relevant, although some argue ChatGPT’s reliance on Bing limits its effectiveness. Disruptive vs Nondisruptive Voting: 7:4.

• Komo.ai: Generative AI search engine prioritizing privacy and relevance.
• Yep.com: Ad-free, privacy-focused AI search engine.
• You.com: Personalized AI search engine with customizable results.
• Perplexity.ai: AI search engine answering complex queries accurately.

Why OpenAI Focused on Multimodal GPT-4o?

Our exclusive sources suggest several reasons for OpenAI’s emphasis on GPT-4o:

1. AGI Vision: Achieving artificial general intelligence requires AI to see and communicate like humans in real-time.
2. Integration of Existing Technologies: OpenAI has already developed audio and vision components, making integration a natural step.
3. 2B Market Challenges: Enterprises have been hesitant due to data quality issues, tech stack maturity, high costs, IT governance, talent gaps, and long sales cycles. Additionally, conflicts with Azure’s enterprise sales channels have made 2C expansion more appealing.
4. GPT-5 Training is not Ready due to Various Reasons

What Should VCs and Startups Do?

In a rapidly changing landscape, adaptability is key. Founders and VCs should embrace change and focus on integrating deeply and providing the best user experience. ALPAI, CTOL.Digital’s parent company, has always prioritized these principles. As the industry evolves, patience and strategic adjustments are crucial.

Last but not the least: proprietary data could be golden!

To a sleepless night for most colleagues in this industry!