OpenAI's Public Relations Nightmare Deepens

Terms ranging from "desperate" (New York Magazine's John Herrman) to "clowns"(Business Insider's Natie Notopoulos) are being applied to once-revered OpenAI.

The tipping point has been for a major player in generative AI to use a voice on a chatbot that sounded too much like that of Scarlett Johansson. Where were the content monitors, lawyers and more? 

Before that was the flight of key members of the "safety patrol" about the risks to humanity embedded in the development of the technology. The meme gaining traction is that putting out there shiny products has priority over values at OpenAI.

And, of course, there was the coup giving head Sam Altman the boot amid contentions the guy was driven by a hunger for power.

Can there be reputation restoration for OpenAI? 

If not, it could become a liability to do business with OpenAI. At the very least that can be in the public relations sense. But if regulators come down on OpenAI's lack of appropriate attention to consequences the situation could be a lot more serious. Interestingly, in the Paul, Weiss AI podcast, in one episode the partner co-hosts discusss third-party risk, as when a business licenses or purchases a particular AI tool. There are financial, regulatory and litigation implications.

Meanwhile both establishment tech like Google and so many startups are chasing the branding of being "the leader" in generative AI. If OpenAI continues to be ham-handed in optics it could be knocked out of that race, despite Microsoft's hefty investment. 

UPDATE:

Scarlett Johanssan hired lawyer John Berlinkski of Bird Marcella to represent her in legal matters associated with OpenAI. He is the same lawyer who represented her in her legal dispute with Disney. This development could mean more damaging headlines about OpenAI. Here are details from Bloomberg Law.

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