"The two artificial intelligence startups behind rival chatbots ChatGPT and Claude are bracing for an existential showdown this year as both need to prove they can grow a business that will make more money than they're losing. The fiercest competition between the two AI developers, along with bigger companies like Google, is a race to win over corporate leaders looking to adopt AI tools to boost workplace productivity. The rivalry is also spilling into other realms, including the Super Bowl."
"Anthropic is airing a pair of TV commercials during Sunday's game that ridicule OpenAI for the digital advertising it's beginning to place on free and cheaper versions of ChatGPT. While Anthropic has centered its revenue model on selling Claude to other businesses, OpenAI has opened the doors to ads as a way of making money from the hundreds of millions of consumers who get ChatGPT for free."
Two rival AI startups behind ChatGPT and Claude face a pivotal year to demonstrate paths to profitability as losses mount. The competition centers on winning enterprise customers seeking productivity gains while also playing out publicly, including Super Bowl ads. Anthropic promotes Claude as an ad-free, enterprise-sold product and released commercials mocking ad-driven chatbots. OpenAI is monetizing free ChatGPT with advertising to reach hundreds of millions of consumers. OpenAI's CEO publicly criticized Anthropic's ads and highlighted ChatGPT's larger user base. The rivalry traces back to a 2021 split when ex-OpenAI leaders formed Anthropic emphasizing safety and future AGI concerns.
Read at SFGATE
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