OpenAI just launched the OpenAI Deployment Company – nicknamed DeployCo – a new standalone venture backed by over $4 billion in initial investment, designed to do something the company has never formally done before: go inside your organisation and fix how you’re using AI.
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The solution is not about offering a new model or a fresh iteration of their API. It is about OpenAI coming into your office.
The concept is relatively simple. Through embedding dedicated engineers, referred to as Forward Deployed Engineers (FDEs), into the client’s organization, OpenAI will be able to pinpoint where AI could help most, redesign processes according to the technology’s principles, and implement systems that would remain relevant long after the project has been completed.
To ensure that it will be able to start deploying FDEs on the first day of operations, the organization has committed to acquiring Tomoro, a consulting firm specializing in applied AI solutions for businesses. Some of Tomoro’s clients include Mattel, Tesco, Virgin Atlantic, and Red Bull, and it will allow OpenAI to immediately bring on board about 150 engineers and deployment experts to DeployCo.
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It is certainly interesting enough to look at the company’s financial standing. DeployCo is set to have its launch at an estimated valuation of $14 billion, having about $10 billion pre-money. Funding amounting to over $4 billion comes from a group of 19 companies from around the world, headed by TPG, alongside Advent, Bain Capital, and Brookfield. Goldman Sachs, Softbank, and McKinsey & Company have also invested in DeployCo.
The latter company name may either be amusing or strategically sound, based on how one looks at it. McKinsey, Bain & Company, and Capgemini have all invested in the same company which would essentially be working against them, implementing enterprise artificial intelligence systems. One could say that they simply wanted access to OpenAI’s cutting-edge technology. But then again, OpenAI has just received investment from the companies they would disrupt.
According to OpenAI, its business client base has now exceeded one million customers via its products and APIs. The idea behind the acquisition of DeployCo is quite straightforward – the future of AI will not be decided by the companies with better models; it will be determined by the company that deploys them. Most businesses are currently stuck with pilot projects for their AI projects, which never see the light of day beyond experimental phases. DeployCo represents OpenAI’s response to this challenge – less SaaS and more deployment.
Whether the model works the way OpenAI expects is open to debate. The consulting industry relies heavily on human talent, and having 150 engineers at their disposal will certainly not take the company far. Yet, given that it has invested $4 billion in its growth strategy and plans to continue making acquisitions, there seems to be a high degree of confidence in OpenAI’s ability to scale quickly enough.
The company that revolutionized the conversation through ChatGPT is now aiming to become the organization that makes these technologies truly practical.
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