Tech5: OpenAI to go for-profit, give Sam Altman stake; SAP, Carahsoft being probed by US government, and more

Forbes India's daily tech news bulletin with five headlines that caught our attention

By Harichandan Arakali Forbes India Staff

Published: Sep 26, 2024 10:08:50 AM IST

Updated: Sep 26, 2024 10:15:52 AM IST

Sam Altman, CEO, OpenAI
Image: Jason Redmond / AFP Sam Altman, CEO, OpenAI Image: Jason Redmond / AFP

OpenAI is planning a restructuring to go for-profit

OpenAI is restructuring itself to become a for-profit company and co-founder Sam Altman will get a stake in the maker of ChatGPT, Reuters reported exclusively on Thursday. Bloomberg followed up with the detail that Altman, the company’s CEO, will get a 7 percent equity stake.

OpenAI was founded in 2015 as a non-profit research organisation to build artificial intelligence (AI) for the benefit of humanity. The company created a for-profit subsidiary in 2019, faced with the high costs of developing its large language model. Microsoft has emerged as its biggest backer, with billions of dollars in investment.

Altman had so far declined to take a stake in the company. OpenAI is currently said to be in talks with potential investors, including Apple, to raise $6.5 billion at a valuation of $150 billion. In another development, OpenAI’s highly regarded CTO Mira Murati is leaving the company.

A spokesperson told Bloomberg, the non-profit entity will “continue to exist”.

US Justice Department probing SAP for potential price fixing

US officials are investigating German software developer SAP and US-based IT services company Carahsoft Technology for allegedly conspiring to overcharge government agencies for over 10 years, Bloomberg reported on September 25. The US Justice Department has been examining potential price-fixing in sales to the US military and other government sectors since at least 2022.

This civil investigation could pose significant legal risks for both SAP, a major technology supplier to the US government, and Carahsoft, which recently faced an FBI raid at its Virginia offices, according to Bloomberg. Carahsoft's spokesperson indicated the search is related to past business dealings, but it remains unclear if it ties directly to SAP, according to the report.

SAP told Bloomberg that it is cooperating with the investigation and stated that it is not involved in any criminal inquiry related to Carahsoft.

Zoho launches low-code IoT platform with industry-specific features

Zoho, India’s biggest software products company, has launched Zoho IoT, a low-code platform designed to help businesses create and deploy custom IoT (Internet of Things) solutions. The platform facilitates real-time data management and operational analysis, helping businesses automate processes and make data-driven decisions without extensive technical expertise.

It offers industry-specific solutions for sectors such as industrial IoT, smart buildings, and energy management, while ensuring compatibility with third-party hardware and offering robust security measures.

Whatfix raises $125 million in funding led by Warburg Pincus

Whatfix, a digital adoption platform provider, has secured $125 million in Series E funding led by Warburg Pincus, with participation from SoftBank Vision Fund 2, the company said in a press release on Wednesday.

This investment will bolster Whatfix's expansion into adjacent offerings and enhance its product suite as it targets growth in the US, EMEA and APAC regions. Since its last funding round in 2021, Whatfix has achieved a 4.5x increase in annual recurring revenue and serves more than 80 Fortune 500 companies, according to the release.

Bharti Airtel launches AI-powered spam detection solution

Bharti Airtel, India’s second biggest mobile phone services provider, has introduced what it says is an AI-based spam detection system. This solution, free for all Airtel customers, activates automatically without requiring downloads or service requests, the company said in a press release on Wednesday.

It has a dual-layered protection system—comprising two filters, one at the network layer and the second at the IT systems layer—that analyses 1.5 billion messages and 2.5 billion calls daily, identifying 100 million potential spam calls and 3 million spam SMSes, according to the press release.

Developed by Airtel's data scientists, the system also alerts users to malicious links and detects fraudulent behavior, Airtel says.