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OpenAI poaches Instacart CEO Fidji Simo to lead apps

OpenAI is growing fast. It’s building a $500 billion “Stargate” AI data center campus, and ChatGPT is breaking traffic records, even though it is too sycophantic.

It sounds like CEO Sam Altman is spread a little thin. He’s overseeing AI research, new infrastructure tools, and some very popular consumer apps.

To help shore up the app part of the business, OpenAI is poaching Instacart’s CEO, Fidji Simo, to be its “CEO of Applications.” Simo, who spent years as a high-profile exec at Facebook before moving to Instacart, has been an OpenAI board member for more than a year.

In a note to employees, Altman wrote:

“To strengthen our execution, I’m excited to announce Fidji Simo is joining as our CEO of Applications, reporting directly to me. I remain the CEO of OpenAI and will continue to directly oversee success across all pillars of OpenAI — Research, Compute, and Applications — ensuring we stay aligned and integrated across all areas. I will work closely with our board on making sure our non-profit has maximum positive impact.”

Simo will be transitioning to the new role over the next few months. She wrote:

“Joining OpenAI at this critical moment is an incredible privilege and responsibility. This organization has the potential of accelerating human potential at a pace never seen before and I am deeply committed to shaping these applications toward the public good.”

Instacart shares were down about 3% in early trading.

To help shore up the app part of the business, OpenAI is poaching Instacart’s CEO, Fidji Simo, to be its “CEO of Applications.” Simo, who spent years as a high-profile exec at Facebook before moving to Instacart, has been an OpenAI board member for more than a year.

In a note to employees, Altman wrote:

“To strengthen our execution, I’m excited to announce Fidji Simo is joining as our CEO of Applications, reporting directly to me. I remain the CEO of OpenAI and will continue to directly oversee success across all pillars of OpenAI — Research, Compute, and Applications — ensuring we stay aligned and integrated across all areas. I will work closely with our board on making sure our non-profit has maximum positive impact.”

Simo will be transitioning to the new role over the next few months. She wrote:

“Joining OpenAI at this critical moment is an incredible privilege and responsibility. This organization has the potential of accelerating human potential at a pace never seen before and I am deeply committed to shaping these applications toward the public good.”

Instacart shares were down about 3% in early trading.

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OpenAI reportedly delaying erotica feature to focus on “gains in intelligence”

OpenAI is delaying its planned “adult mode,” as it seeks to shore up ChatGPT’s core capabilities before the chatbot can generate erotic content.

A source within OpenAI told tech news site Sources that the company will miss its Q1 target for launching the feature:

“We’re pushing out the launch of adult mode so we can focus on work that is a higher priority for more users right now, including gains in intelligence, personality improvements, personalization, and making the experience more proactive.”

The company said it still believes in “treating adults like adults,” but said it wants to get the experience right. OpenAI has been testing user age estimation technology ahead of the planned release.

“We’re pushing out the launch of adult mode so we can focus on work that is a higher priority for more users right now, including gains in intelligence, personality improvements, personalization, and making the experience more proactive.”

The company said it still believes in “treating adults like adults,” but said it wants to get the experience right. OpenAI has been testing user age estimation technology ahead of the planned release.

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Anthropic will sue the Pentagon over supply chain risk designation, Amodei says

Anthropic CEO Dario Amodei said in a public post that the company will sue the Pentagon after receiving a letter from the Department of Defense officially designating Anthropic as “a supply chain risk to America’s national security.”

Amodei says that the effect of the unprecedented designation for an American company is more narrow than originally described, and that most of its customers would not be affected.

“With respect to our customers, it plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts.”

Amodei says the company does not “believe this action is legally sound, and we see no choice but to challenge it in court.”

The CEO also apologized for statements he made in a leaked internal memo in which he claimed that the company was targeted because it didn’t show “dictator-style praise” for President Trump.

“With respect to our customers, it plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts.”

Amodei says the company does not “believe this action is legally sound, and we see no choice but to challenge it in court.”

The CEO also apologized for statements he made in a leaked internal memo in which he claimed that the company was targeted because it didn’t show “dictator-style praise” for President Trump.

$40B💰

SoftBank is going to great lengths to double down on OpenAI — including taking on significant debt. After completing a $40 billion investment to become one of the ChatGPT maker’s largest backers, the Japanese conglomerate is now seeking a roughly $40 billion loan with a 12-month term, Bloomberg reports.

The financing would be SoftBank’s largest-ever dollar-denominated deal. The AI investment has helped lift profits, but it is also pressuring SoftBank’s credit profile.

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