As OpenAI reportedly eyes a $150 billion valuation, Richard Windsor, Radio Free Mobile founder, joins Madison Mills and Seana Smith on Morning Brief to discuss the ChatGPT maker’s position as competition in the artificial intelligence (AI) market heats up.

“How this company can value itself at $150 billion, frankly, is beyond me. If you look at the overall market, OpenAI no longer has a massive technology lead. If you look at what Meta (META) was talking about this week, they've provided their best model to the open source for free.”

Windsor says the $150 billion price tag is “an optimistic scenario for a company where almost all of the founders have left. The key brains of the company left this week so that valuation looks incredibly risky to me.”

He says OpenAI’s reported shift to a for-profit model is “an absolute must-have.” Windsor adds, “If you look at some of the term sheets that are going out, my suspicion is that there's a promise in there to turn into a proper for-profit company over the next year or so because, quite frankly, if it doesn't, then the company is not worth anything at all.”

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This post was written by Naomi Buchanan.