OpenAI launches o1
OpenAI launches o1
Did Big Tech bite off more than it can chew with AI
OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion
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OpenAI Launches o1
OpenAI has officially launched its new AI model series called o1, which is designed to enhance reasoning capabilities for solving complex problems. This release, available as of September 12, 2024, includes two versions: o1-preview and o1-mini. The models are accessible to ChatGPT Plus and Team subscribers, with plans for broader availability in the coming weeks for Enterprise and educational users, and eventually to all free users of ChatGPT.
Unlike previous models, o1 is trained to spend more time "thinking" before generating responses. This allows it to tackle complex tasks in areas such as mathematics, coding, and science more effectively. For example, in a qualifying exam for the International Mathematics Olympiad, o1 achieved an impressive 83% accuracy, compared to just 13% for its predecessor, GPT-4o.
Furthermore there is o1-mini which does not match the capabilities of o1-preview. It offers a significant cost advantage, being 80% cheaper. This makes it particularly well-suited for applications that require effective reasoning without the necessity for extensive world knowledge.
Pricing for o1 is significantly higher than that of GPT-4o, costing $15 per million input tokens and $60 per million output tokens. This is approximately three to four times more expensive than the previous model. Currently, o1 lacks some features found in earlier models, such as web browsing and file uploading capabilities. It also has a message limit of 30 for o1-preview and 50 for o1-mini per week….
Read the original article on OpenAI
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Did Big Tech bite off more than it can chew with AI
Companies have found greater return on investment (ROI) with smaller AI models designed for specific purposes. These tailored models, in contrast to the unstructured large language models, are providing immediate and significant ROI.
The key advantage of these smaller models is their ability to detect patterns from far less data, all of which is relevant to a given field. For instance, a model designed to make stock trades may pull data from the Federal Reserve, business news sites, and other relevant areas, while ignoring countless irrelevant items online. This targeted approach appeals to companies because it delivers tangible ROI, unlike the large language models.
While large language models have only generated around $3 billion in revenue. Their shortcomings in areas like math have limited their practical applications in business. As one expert noted, "with these technologies, 2 plus 2 doesn't always equal 4."
This is not to say that large language models are entirely useless or that the AI revolution is overblown. There are certainly use cases for these models, and AI is already proving valuable across industries, from finance to agriculture….
Read the original article on The Hill’s Opinion
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OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion
OpenAI is reportedly in negotiations to secure $6.5 billion from investors, positioning the company at a staggering valuation of $150 billion, according to sources with knowledge of the discussions.
This new valuation marks a significant increase from the $86 billion valuation established during the company's tender offer earlier this year, solidifying OpenAI's status as one of the most valuable startups globally.
In addition to equity funding, OpenAI is also exploring a $5 billion debt raise through a revolving credit facility with banks, as revealed by one insider who requested anonymity due to the confidential nature of the talks. Traditionally, companies that secure substantial credit commitments from banks often reward these lenders with roles in their initial public offerings (IPOs), which can lead to more favorable financing terms.
OpenAI has chosen not to comment on the matter. Sources indicate that negotiations are still in progress, and the terms may evolve as discussions continue….
Read the original article on Bloomberg
Cheers! SBalley Team