Despite ChatGPT's growth, OpenAI investors see more prospects for startups.

 Despite ChatGPT's growth, OpenAI investors see more prospects for startups.

According to them, investors are still searching for innovative artificial intelligence (AI) technologies that might improve user interface and solve deep tech problems like brain-computer interface.

During a Reuters NEXT conference on Thursday, two OpenAI investors said that the company's announcement on artificial intelligence "apps" does not necessarily mean the end for emerging firms developing AI products.

According to them, investors are still searching for innovative artificial intelligence (AI) technologies that might improve user interface and solve deep tech problems like brain-computer interface.

Earlier this week, the creator of the hugely successful ChatGPT chatbot revealed a marketplace where users can get customized AI "apps" for things like making stickers or teaching arithmetic.

The announcement instilled panic in the minds of owners of AI startups, who believe they won't be able to compete with OpenAI, which is attempting to establish an AI empire by offering goods for both businesses and consumers.

"There's a ton of space in AI for further innovation. "We are currently in a transitional phase of a multi-decade revolution," said Sequoia Capital partner Konstantine Buhler at the seminar. "You can play a very big role in how this is shaped."

In 2021, Sequoia made a financial investment in OpenAI, the company behind ChatGPT, in which Microsoft has a greater share.

Partner at Thrive Capital, Avery Klemmer, said that she sees potential for the development of consumer apps in addition to ChatGPT. Thrive Capital recently raised its investment in OpenAI.

She anticipates future developments based on the current AI chatbot model made popular by ChatGPT.

"I think there will be really creative formats and forms of engagement that get invented," Klemmer said.

Analysts and investors assert that the creation of AI products is still in its early phases, notwithstanding the recent frenzy of financial investments into the technology by corporations and venture capital organizations.

According to Jill Chase, a partner at CapitalG, "the accelerated pace to investigate in the space could result in an immediate reduction in the cost of AI inference, or using a model generated by AI to make predictions, and inspire new products," even though it's still rather costly to build applications using large language models.

"The cost of inference decreasing down so dramatically may seem like an insignificant matter, but it's hugely impactful for which sorts of businesses can be created and what use cases institutions can empower," she said.