Big Technology Podcast: OpenAI’s New Structure, Apple Replacing Google With AI?, Cheating With ChatGPT
Hosted by Alex Kantrowitz
Release Date: May 9, 2025

Introduction

In the Big Technology Podcast Friday Edition, host Alex Kantrowitz delves into significant developments within the tech industry, focusing on OpenAI’s organizational restructuring, Apple’s potential shift away from Google in search services, and the alarming trend of academic dishonesty fueled by ChatGPT. Joined by Ranjan Roy of Margins, the episode offers a nuanced analysis of these pivotal topics, enriched with insightful quotes and discussions.

1. OpenAI’s Organizational Restructure

A. Leadership Changes and New Roles

The episode opens with Alex announcing major changes at OpenAI, highlighting the appointment of Fiji Simo, former CEO of Instacart, as the new CEO of Applications. This move signifies OpenAI’s intensified focus on its application layer rather than solely on its foundational models.

• Alex Kantrowitz [02:00]: "OpenAI is nothing but applications. I mean, of course the models work, but their moat are their applications."
• Ranjan Roy [06:34]: "That's a good division of power and labor and skill set. They have not been able to tell a clear business story and now hopefully Fiji Simo will try to wrap her head around that and actually come up with one."

Sam Altman, the current CEO, announced that he will retain his role but shift his focus to research, compute, and safety systems, reflecting his prioritization of long-term AI safety and the pursuit of superintelligence.

• Alex Kantrowitz [04:53]: "Sam is going to remain CEO, but he's starting to delegate a lot of his responsibilities to others and like core company responsibilities."

B. Implications of the Restructure

Ranjan discusses the strategic implications of Fiji Simo's appointment, noting her expertise in scaling consumer businesses and advertising—a critical area where OpenAI seeks growth.

• Ranjan Roy [07:46]: "She built out Instacart's advertising business very well. If OpenAI wants to introduce ads into ChatGPT, she could crack that."

C. Control and Financial Structure

A significant shift is OpenAI’s move back from a for-profit model to a public benefit corporation (PBC), ensuring the nonprofit parent retains control. This change addresses concerns from civic leaders and regulatory bodies, positioning OpenAI to continue fundraising while adhering to its mission.

• Alex Kantrowitz [25:35]: "The nonprofit will continue to control the company. It's a major shift that maintains the contours of how OpenAI is currently set up."
• Ranjan Roy [26:06]: "Matt Levine notes the nonprofit will control the PBC with super voting stock, making it just nonprofit enough legally but not entirely a traditional nonprofit."

D. Relationship with Investors and Microsoft

The restructuring process faces challenges, particularly with Microsoft, a major investor. Microsoft seeks to retain ownership rights to OpenAI’s models and amend provisions related to AGI, complicating the transition to a PBC.

• Alex Kantrowitz [30:05]: "Microsoft is no longer just a major investor but increasingly a competitor, especially in enterprise software."
• Ranjan Roy [31:14]: "Satya Nadella’s influence keeps Microsoft’s control strong, potentially hindering OpenAI’s restructuring efforts."

2. Apple’s Potential Shift Away from Google in Search Services

A. Eddy Cue’s Testimony and Statements

Apple’s executive, Eddy Cue, testified in federal court, suggesting the integration of AI search engines like OpenAI, Perplexity, and Anthropic into Apple’s Safari browser, potentially replacing Google’s search service.

• Alex Kantrowitz [35:37]: "Eddy Cue testified there is a chance that AI search engines will eventually replace standard search engines such as Google."

B. Financial Implications

Google currently pays Apple $20 billion annually to remain the default search engine on iPhones. Apple's shift to AI-driven search could significantly impact Google's revenue.

• Ranjan Roy [35:37]: "Google’s $20 billion a year from Apple could be at risk, but the competitive bidding from AI providers makes it unlikely Apple can replace Google entirely."

C. Market Reaction

Following Cue’s statements, Alphabet’s stock saw a significant decline, while Apple’s stock experienced a modest drop.

• Alex Kantrowitz [34:00]: "Alphabet was down 7% after the news, while Apple was only down 3%."

D. Future of Search

The conversation explores the future landscape of search, contemplating a hybrid model where users can toggle between traditional and AI-driven search functionalities.

• Alex Kantrowitz [38:04]: "I see it as a toggle between traditional search and AI search, enhancing the user experience with more detailed and contextual answers."

3. Cheating in Colleges with ChatGPT

A. Rising Academic Dishonesty

The podcast highlights a New York Magazine article detailing how students are increasingly using ChatGPT to complete academic assignments, undermining the educational process.

• Alex Kantrowitz [47:45]: "College is just how well I can use ChatGPT at this point."

B. Impact on Education Systems

Ranjan emphasizes the need for educational institutions to adapt their teaching and assessment methods to counteract the misuse of AI tools.

• Ranjan Roy [49:29]: "If universities don't innovate their assignment structures, students will continue to rely on AI, rendering traditional assessments obsolete."

C. Proposed Solutions

Potential solutions include oral defenses of AI-generated work and integrative methods that require critical thinking beyond what AI can provide.

• Ranjan Roy [47:45]: "Use ChatGPT to create your paper and then give a verbal defense of your argument. That’s a better approach than traditional written assignments."

4. Discussion and Implications

A. Balancing Innovation and Control

The episode underscores the delicate balance OpenAI must maintain between rapid innovation in AI applications and the necessary control structures to ensure responsible development and deployment.

• Ranjan Roy [28:26]: "The mission comes first, but this helps us in our fundraising. That's it. That's OpenAI in a nutshell."

B. Ethical Considerations in AI Advertising

A significant concern raised is the ethical implications of integrating advertising within AI platforms, especially those perceived as personal assistants or companions.

• Alex Kantrowitz [20:03]: "Advertising within a chatbot that users confide in is a dangerous territory with potential privacy and ethical pitfalls."

C. Future of Technology and Society

The discussions reflect broader themes about the future role of AI in society, the transformative impact on traditional business models, and the necessity for institutions to evolve in response to technological advancements.

Conclusion

The Big Technology Podcast episode provides a comprehensive analysis of OpenAI’s strategic realignment, Apple’s evolving search strategies, and the challenges AI poses to academic integrity. Through engaging dialogue and expert insights, Alex Kantrowitz and Ranjan Roy navigate the complexities of these developments, offering listeners a clear understanding of the rapidly changing tech landscape and its profound implications for businesses, education, and society at large.

Notable Quotes:

• Ranjan Roy [06:34]: "They have not been able to tell a clear business story and now hopefully Fiji Simo will try to wrap her head around that and actually come up with one."

• Alex Kantrowitz [28:06]: "Sam Altman says the mission comes first. But we were trying to go fully for profit, but the mission comes first. It's bizarre."

• Ranjan Roy [20:03]: "They have to be extra careful because one, that can affect their overall, like the utilization of the product. But two, in terms of overall privacy concerns, their branding on that. And they've discussed that privacy is not great."

• Alex Kantrowitz [44:34]: "Yes. And yes. And it's a media company and it's the thing that lets you eventually take the actions."

• Ranjan Roy [51:02]: "If universities don't innovate their assignment structures, students will continue to rely on AI, rendering traditional assessments obsolete."

This summary encapsulates the key discussions and insights from the podcast, providing a clear and detailed overview for those who haven't listened to the episode.