OpenAI CFO says AI hardware boost ChatGPT in ‘new era of computing’

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OpenAI CFO says AI hardware boost ChatGPT in ‘new era of computing’

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OpenAI is betting a new “era” of computing will justify the company’s decision to spend billions of dollars on bespoke hardware to go with it, Chief Financial Officer Sarah Friar said.

The artificial intelligence startup, best known for the ChatGPT chatbot, announced plans on Wednesday to buy iPhone designer Jony Ive’s devices startup io for about $6.4 billion. Ive’s company was founded roughly a year ago and doesn’t have a product on the market.

Friar told CNBC on Thursday that any startup as young as io was “hard to value.” But she sees an eventual return on that investment.

“You’re really betting on great people and beyond,” Friar said. “It’s not just about imagining what a new platform could look like — you’ve got to be able to craft it. You’ve got to be able to build it. You’ve got to be able to understand supply chains.”

Friar, who took the CFO job at OpenAI last summer and was formerly CEO of Nextdoor, said new devices will eventually get OpenAI’s technology in the hands of more users, and drive subscription growth and attach rates. ChatGPT last reported 500 million weekly active users, but monthly actives are higher, Friar said.

“When you start thinking about it beyond just a phone, it starts to grab the imagination,” she said. “If we can get people around the world excited to use AI, we have many ways to begin to think of a business model around that. So it could be an ongoing, ******* subscription for ChatGPT.”

Friar’s comments echo others in the tech industry who have said AI hardware could change the face of computing, and threaten the iPhone. Eddy Cue, Apple’s chief of services, said earlier this month that he believes AI devices could replace the iPhone within ten years.

While OpenAI works with Apple on an iPhone and Siri integration, Friar said the company still saw a need to have its own proprietary devices.

“We want to work with many partners. When we single-thread ourselves, we don’t think that drives max innovation,” Friar said. “We continue to work closely with Apple on their device, and we’d love to see more being done with AI — but we also want to keep sparking innovation broadly in the ecosystem.”

Friar hinted at new devices without touchscreens. She declined to give details around what exactly they might look like, pointing to the former Apple team’s secretive culture and “mystique” around products.

“As you birth this new era of AI, there’s going to be new platforms and new substrate,” she said. “We think of tech today as a little bit more around touch. We as humans, we see things, we hear things, we talk. And our models are great at that.”

WATCH: CNBC’s full interview with OpenAI CFO Sarah Friar

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