OpenAI makes surprise media acquisition ahead of IPO. Why it will fail.

OpenAI said Thursday it had acquired TBPN—short for Technology Business Programming Network—which specializes in lengthy daily live shows focused on technology and business. TBPN staff will continue to produce their own content while also helping with marketing and communications at OpenAI.

No financial details of the acquisition were disclosed but the price was in the “low hundreds of millions” according to the Financial Times, citing a person with knowledge of the matter.

OpenAI didn’t immediately respond to a request for comment. Barron’s owner News Corp has a content-licensing partnership with OpenAI.

If the reported price tag is accurate, it’s a hefty one for a show with about 70,000 viewers per episode. By comparison, Spotify most recently renewed its exclusive deal with star podcaster Joe Rogan, who regularly draws 15 million listeners across various platforms, for up to $250 million across a multiyear period according to The Wall Street Journal.

OpenAI would likely argue that it is focusing on a more selective audience within Silicon Valley. The ChatGPT developer said the acquisition would support a “real, constructive conversation about the changes AI creates” and that TBPN would remain editorially independent. OpenAI CEO Sam Altman said TBPN was his “favorite tech show” and he didn’t expect favorable treatment.

However, it’s hard to see how TBPN can remain a trusted neutral outlet or attract high-profile interviews with AI executives while its staff report to OpenAI’s own chief global affairs officer, Chris Lehane.

Issues around neutrality are likely to become particularly acute as OpenAI is expected to list publicly as soon as this year and competition ramps up with its AI peer Anthropic. Will Meta Platforms CEO Mark Zuckerberg repeat his appearance on TBPN from last year when it involves coming onto a listed rival’s in-house media show?

It’s not like technology executives are starved for choice when it comes to getting their voice out, even if they prefer to avoid traditional media interviews. There are various podcasts that have become the favored venues for tech execs to wax lyrical about the wonders of AI while facing relatively light probing, including The Joe Rogan Experience, the Lex Fridman Podcast, and the All-In Podcast.

Having just raised $122 billion in new funds at a valuation of $852 billion, OpenAI can probably afford a few speculative gambles. But buying TBPN doesn’t look like the best use of its resources.

Write to Adam Clark at adam.clark@barrons.com