OpenAI has opened its first Australian office in Sydney and struck local partnerships with dozens of businesses, including REA Group, Wesfarmers, Commbank, Virgin Australia, and Fortescue.

The local blitz comes as the US-based AI lab feels the pressure from rivals closing the gap in Large Language Models and other generative AI tech.

At the Sydney office launch yesterday, OpenAI’s chief strategy officer Jason Kwon said Australia is “well-placed to lead the world in AI”, pointing to the country’s “history of early technology adoption, world-class developer community, and clear ambition to lift productivity”.

The Australian team will work largely on local tech support and partnership building, but is “expected to expand into more technical and specialised functions”, according to the company.

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Kwon said OpenAI is “investing in local talent and working directly with Australian businesses, government and the tech community to turn that potential into real economic and societal gains.”

The tech giant has struck a deal with La Trobe University, which will roll out ChatGPT Edu to all staff and students by 2027, integrate AI into all curriculum, and will launch Australia’s first AI-focused MBA program.

The NRL has entered into joint initiative — the AI Volunteer Guide — aimed at helping community sports volunteers streamline rosters, sponsorship proposals and admin tasks.

Wesfarmers, the Perth-based parent company to Bunnings, Kmart, Target and Officeworks, will integrate ChatGPT Enterprise into the training and daily work systems used by its 118,000-strong workforce.

The Canva integration

Canva’s 5000+ workforce also uses ChatGPT Enterprise, and has developed products built on top of OpenAI’s application programming interface.

Commbank has a multi-year partnership with OpenAI to further automate its customer services, and strengthen its scam and fraud detection, while Virgin Australia will use it to explore customer behaviour around planning and shopping for travel.

Air New Zealand is integrating the tools into its customer self service portals as well as its airline maintenance and operations. Fortescue is exploring AI applications across its mine, rail and port operations.

Kwon chats to NRL legend Brad Fittler, presumably about the new local sports volunteer assistant tools

News Corp has expanded the multi-year “landmark” partnership it signed with OpenAI in 2024, with REA Group today launching Real Assist, a new AI-powered “conversational companion” that will sit on realestate.com.au and help homeowners with property valuations.

REA Group Chief Product and Audience Officer, Jonathan Swift, said in a media release that Real Assist aims to “demystify property valuation, helping homeowners build their knowledge and empowering them to take the next step”.

Swift said the tool uses “industry best practice to deliver a high-quality agentic AI experience that can be scaled across our platform … Our goal is for it to become an essential tool for all Australians throughout their property journey”.

The tool will roll out over the coming weeks, along with AI search, which has been trialled over the past 12 months. The tool allows property seekers to “search for property in the same way that they speak”.

The example in REA Group’s press release was “show me homes with a pool and a double garage in Kew”, which will garner “accurate results instantly”.

The new AI tools coming to realestate.com.au

Interestingly, today News Corp also launched ‘Ask Skye’ on escape.com.au, where AI-powered personal travel assistant Skye can draw up personalised itineraries with recommendations, live flight fares, accommodation options, local activities, and sites.

Ask Skye was, however, developed in partnership with Ask Layla, an AI travel tech company.

Competition heats up

OpenAI chief executive Sam Altman has declared “code red” in an internal memo, halting work on other AI agents and advertising, and redirecting all efforts into advancing ChatGPT as competition heats up.

Google announced earlier this month that its Gemini app has 650 million users, compared to ChatGPT’s 800 million.

Another rival, Anthropic, released its latest AI model last month, and has plans to open an office in Australia. Anthropic is currently seeking a “founding” recruiter to build its presence in the Australian and New Zealand markets.

A job advertisement said the recruiter will be required to hire employees responsible for “laying the foundation for Anthropic’s long-term success in ANZ.”

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