In the wake of OpenAI's recent "code red" internal memo signaling heightened competitiveness against Google's formidable advances in AI technology, the company's enterprise adoption metrics reflect promising growth coupled with looming challenges. As someone who’s advocated for tech skill-building and entrepreneurship through initiatives like CADChain and Fe/male Switch, I find this struggle between AI juggernauts particularly fascinating, and equally fraught for startups and smaller organizations seeking clarity amid the fray.
OpenAI doesn’t just face competition, it faces existential questions about scalability, adoption sustainability, and long-term relevance. While their enterprise tools like ChatGPT and custom GPTs are embraced by large organizations, often touted for their ability to save workers up to one hour per day according to reports, the financial stress of acceleration in reasoning tokens, a key metric for complexity in computational use, brings unspoken risks.
Breakdown of Enterprise Adoption Growth
OpenAI has seen enterprise usage grow exponentially, as evidenced by an eightfold surge in message volumes since late 2024. Notably, the adoption of tailored AI assistants known as custom GPTs stands out, showing a nineteenfold increase this year alone. For companies engaging these tools, such as BBVA’s deployment of 4,000 custom GPTs, the potential may seem limitless, a mix of automating repetitive workflows and preserving knowledge internally. Yet, the finer details of this uptake carry concerns about scalability. Consuming 320 times more reasoning tokens compared to previous years raises questions about how budgets can accommodate such energy-intensive computations in an era of increased scrutiny over environmental and financial impacts.
In addition to raw adoption figures, startups should be keenly aware of the type of user engagement happening. Venture ecosystems frequently operate under pressure to implement multifaceted AI technologies without assessing whether users are employing these sophisticated capabilities effectively. A survey suggested three-quarters of workers found AI tools allowed them to perform previously unattainable technical tasks. It’s easy to celebrate this, but what lacks alignment often is the balance between heavily adopting tech tools and fully benefiting from their advanced functionalities.
Common Pitfalls for Entrepreneurs Observed in Scaling AI Adoption
From my vantage point as a builder of various tech-based SME accelerators and initiatives, I’ve seen several patterns emerge that often become stumbling blocks for less resource-rich organizations:
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Cost Management: Startups often dive into solutions like OpenAI's without weighing overhead sustainability. AI systems, while powerful, can scale computational demand disproportionately. If reasoning tokens or similar internal metrics spiral out, so do costs.
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Over-Selling Capabilities: Entrepreneurs, anxious to stabilize their product-market fit, might adopt trendy tools (such as generative-AI-based coding) that appear promising for initial traction but don’t support long-term uptick or scale when benchmarks reveal limitations.
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Skill Underutilization: Teams receive tools, encounter initial wins, yet ignore advanced features because training cycles fall short. Minimal effort on workshops or real skill-building means that your team may only skim the surface of AI applications that could otherwise revolutionize entire sectors in timing-critical opportunities.
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Over-Reaction to Threats: Fear-driven decision-making can sometimes derail what might have otherwise been solutions tailored well within reasonable scale. A “code red” urgency as seen in OpenAI’s executive communications mirrors fears for organizational survival but can result in misallocated resources by less seasoned players attempting mimicry.
Implementation Guide for Founders Cautiously Embracing AI
Having walked paths in both deeptech development and educational integrations across Europe, I can’t stress enough the value of careful thoughtfulness and resourcefulness before introducing sweeping AI solutions to your systems.
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Identify Core Use-Case Data: Start by mapping your organizational needs to existing contributions rather than pushing messaging platforms like ChatGPT through trial alone. BBVA’s incorporation focused on knowledge management; its system choices revolved around encoding bank-specific protocols securely. What specific niche needs would success entail for your startup?
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Experiment Narrowly But Measure Broadly: Use token analytics, operational time savings, or worker sentiments following adoption in beta stages to reflect balance in savings relative to environmental critiques OpenAI faces today surrounding reasoning-token inflation.
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Avoid Promise-Chasing: The vulnerability OpenAI faces from Google’s Gemini contributions in language modeling speaks volumes as far as cautionary tales. Entrepreneurs should craft options carefully so high-revenue experiments don’t blind early-stage pivots nearing enterprise alternatives.
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Embed, Don’t Outsource Skills Training: Embed interactive tutorials into any workflow rather building reliance purely upon external vendor tutorials. This proves itself twofold long-term, and helps mitigate attrition tied to organizational resource volatility.
Insights from Competitive Dynamics
One particular point worth dissecting is OpenAI’s memo focus around Google's Gemini push directly influencing ad-process adjustments. Founders here, whether operating B2B SaaS or even niche enterprise-tailored tech, gain advantage by watching repeat landscapes do well during periods where decision lags dictate slower rival functionality, visibility opportunities better aligned across purposes.
Google sidesteps immediate manufacturing slowdown via pre-established financial blocks yet startups building compute-intensive blockers among beta-scale arenas succeed when toggling carefully parallel resource redistribution cycles between minimal scaled startup oversight reductions simultaneously missing competitive oversights spotted high-volume imprints. Having gained similar operational familiarity through CADChain iterative model-stacked derivatives across IP tolerance zones applied actively Europe-bound industry deviations comparative ease restored basics eventual partnership-building otherwise indefinite scenarios. Platform-host protection layering future downpurchase implications-alignment incremental efficiencies achieved during releases restoring smoother customer-building inference layering core-scoped datasets production-design engineered redundancies-autoprotect.
Don't let giants' pivots scare small-sized entries underskilled realities exploring alternatives safely contained time-bound recreating endpoint resets purchasing-order de-risk expansions entire startups gradual precision intervals repeat extrapolating normality curated scaling zones independently buffered smooth-runs-host-protect-advised-revised.
My Observations
OpenAI’s self-acknowledged struggles have rightly demonstrated effects entrepreneurs carefully balanced against momentum-wise oversaturation failures felt within multiple EU Swiss launched only-strikes-coded rollout aversions minimized-extract rather following optimizable crises-engaged-measured ahead logical moment dumps biased motivations presumably difficulty-complex-sector slow rerun-repeat settings adaptive structures guaranteeing minimum-end reintegration following-heavy.
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FAQ
1. How has OpenAI's enterprise adoption grown recently?
OpenAI has experienced an eightfold increase in enterprise message volume over the past year and a nineteenfold surge in the use of customized GPTs, such as BBVA's deployment of over 4,000 custom assistants. Discover OpenAI enterprise adoption
2. How are custom GPTs being used by enterprises?
Custom GPTs are being tailored to automate workflows and encode organizational knowledge securely. For example, BBVA uses over 4,000 custom GPTs regularly. Learn about BBVA's GPT usage
3. How has OpenAI responded to competitive pressure from Google?
CEO Sam Altman issued a "code red" memo, prioritizing improvements to ChatGPT over other projects to combat competitive threats like Google's Gemini and Anthropic's Claude models. Explore OpenAI's 'code red' memo
4. How is OpenAI handling cost concerns related to computational demand?
OpenAI faces rising costs due to computational intensity, as reasoning token use has increased 320 times year-over-year. This raises questions about sustainability for enterprise clients. Find out about OpenAI's cost concerns
5. Can AI tools really improve worker efficiency?
Yes, OpenAI enterprise tool users have reported saving up to one hour daily and performing tasks they couldn’t do before, including technical work. Learn about AI's impact on worker efficiency
6. What pitfalls do startups face in scaling AI adoption?
Startups often struggle with cost management, overselling capabilities, skill underutilization, and fear-driven decision-making in their AI scaling efforts.
7. How has Google's Gemini threatened OpenAI's position in AI?
Google's Gemini model is surpassing OpenAI's benchmarks in technical domains, prompting OpenAI's urgency to enhance ChatGPT and develop competitive offerings. Explore Google's Gemini challenge
8. Are AI tools being used effectively in enterprises?
While many workers leverage foundational AI tools, advanced functionalities often go underutilized due to a lack of training or integration into organizational workflows.
9. How should startups approach AI adoption cautiously?
Startups should prioritize narrowly defined use cases, measure outcomes broadly, embed skills training into workflows, and avoid chasing high-risk promises without measurable benefits.
10. What impact has OpenAI's 'code red' had on their strategy?
The "code red" memo led OpenAI to reallocate resources, fast-tracking advancements in ChatGPT and other core models while delaying secondary projects. Learn more about OpenAI's strategy shift
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.