OpenAI appoints Fidji Simo to lead apps business; Mem0 unveils new memory architectures for LLMs

Latest AI Startup News
Total 478 words · 2 mins read

Key Takeaways

  • OpenAI hired Fidji Simo (ex-Instacart CEO) to lead its apps business.
  • Mem0's new memory architectures for LLMs achieve 91% lower latency and 90% cost savings.
  • OpenAI enables third-party RFT access for o4-mini, showing significant performance gains.
  • OpenAI's RFT costs $100 per core training hour, billed to the second.
  • Accenture reports only 8% of companies successfully scale multiple AI initiatives.

Top Stories

OpenAI hires Fidji Simo to lead apps business.

On May 8, 2025, OpenAI appointed Fidji Simo, previously CEO of Instacart and a Facebook app chief, as the head of its apps business. OpenAI CEO Sam Altman stated this allows him to focus on research, compute, and safety.

Mem0 unveils new memory architectures for LLMs.

On May 8, 2025, Mem0 introduced Mem0 and Mem0g, new memory architectures designed for LLMs to maintain coherent conversations over extended periods. According to Mem0 CEO Taranjeet Singh, Mem0 achieves 91% lower latency and saves over 90% in token costs compared to full-context approaches.

OpenAI enables third-party RFT access for o4-mini.

On May 8, 2025, OpenAI announced that third-party developers can now access reinforcement fine-tuning (RFT) for its o4-mini language reasoning model, allowing customization for enterprise needs. Fine-tuning has also been rolled out for the company’s GPT-4.1 nano model.

OpenAI's RFT shows significant performance gains.

On May 9, 2025, it was reported that early adopters of OpenAI's RFT demonstrated significant performance gains. Accordance AI improved tax analysis accuracy by 39%, Ambience Healthcare enhanced medical code assignment by 12 points, Harvey improved legal document analysis, Runloop boosted code generation, Milo improved scheduling, and SafetyKit enhanced content moderation.

OpenAI's RFT costs $100 per core training hour.

On May 9, 2025, it was reported that OpenAI's RFT is billed at $100 per hour of core training time, prorated to the second. Charges only apply to model modification, excluding queues and idle phases.

Accenture: Only 8% of companies scale AI initiatives.

On May 8, 2025, Accenture reported that only 8% of companies have successfully scaled multiple strategic AI initiatives, while 92% are still stuck in experimental implementations. Studies from Vellum and Deloitte also highlight challenges in AI deployment, scalability, and risk management.

Regulation Watch

Sam Altman presents OpenAI's AI stack to Congress.

Published on May 8, 2025, Sam Altman testified before the U.S. Congress and included a chart showing how OpenAI views the "AI stack" it offers customers. He cited ChatGPT and Microsoft’s Copilot as examples of AI applications.

Tech Breakthroughs

Multiple AI marketing tools released by tech companies.

As reported on May 8, 2025, companies like Google, eBay, Meta, and Shopify have released multiple AI tools for marketing. Startups like Avataar and Superscale are also developing AI-powered applications to help sellers create marketing assets.

Product Spotlight

TechCrunch Sessions: AI on June 5, startups deadline soon.

TechCrunch Sessions: AI will be held at UC Berkeley’s Zellerbach Hall on June 5, 2025, bringing together builders, thinkers, and investors. As of May 8, 2025, startups have 24 hours left to secure an exhibit table, with the deadline on May 9, 2025.

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