This week in AI and technology has been mind-blowing, unveiling new reasoning models outperforming even PhD-level intelligence. The industry saw significant news, with major companies releasing hardware and software innovations, though some, like Apple’s latest smartphone, lacking anticipated AI features, left users unimpressed. Environmental and ethical concerns gained attention, highlighting the need for sustainable practices amid AI’s rapid growth. Let’s get into it.
This week’s biggest story (and maybe for the year) was the release of OpenAI’s new reasoning-thinking language model (o1-preview). Humanity received a power-up as this new series of models boosted LLM intelligence from that of an undergraduate college student to that of a PhD. Even more shocking was Dr. Jim Fan’s revelation that intelligence scales with computing, and inference is also scaling independently. In other words, the longer the AI can think, the fewer hallucinations occur and the higher the accuracy of responses. As specialized inferencing computing increases, the thinking time will decrease, and accuracy will increase. Clearly, the glide path to AGI is set, and it is reasonable to expect we will achieve it in 18 to 24 months (draw a line through two points).
Also, this week, Apple’s iPhone 16 line of smartphones was announced, but it was revealed that the new Apple Intelligence will not be on board at launch. While Huawei logged an astonishing three million orders for its impressive new trifold foldable phone, none appeared at Apple’s event, leaving users unimpressed.
Let’s review the week’s news with OpenAI. They unveiled their latest model, “Strawberry o1,” which promises a remarkable leap in AI reasoning capabilities. This model has achieved 93% accuracy in complex mathematical challenges and ranks in the top 1% of programming contests worldwide. However, not all is rosy with the new model. OpenAI’s CEO, Sam Altman, has candidly described the “Strawberry o1” as “flawed and limited,” emphasizing the need for cautious optimism. In an interview with Oprah Winfrey, Altman expressed his concerns about AI’s rapid development outpacing safety measures. He advocated for government-led safety testing of AI technologies, akin to the rigorous evaluations conducted for aircraft and medicines.
In tandem with these developments, OpenAI is reportedly in talks to raise $6.5 billion in funding, potentially catapulting its valuation to a staggering $150 billion—surpassing industry giants like Goldman Sachs. However, this growth comes with hints that subscription prices for OpenAI’s services could rise significantly, possibly reaching up to $2,000 per month, which may impact accessibility for smaller enterprises and individual users.
Meanwhile, Google is taking strides to match OpenAI’s newest model and enhance the reliability of AI-generated content. The company has introduced a new tool that enables large language models to fact-check their responses.
Emerging players are also making their mark. French startup Mistral AI has unveiled “Pixtral 12B,” a multimodal AI model capable of processing both text and images. This positions Mistral as a notable competitor to established multimodal models like GPT-4 and Grok for which Gartner predicts 40% of all models will be by 2027.
However, the rapid expansion of AI technologies is not without consequences. Recent studies indicate that the surge in generative AI is tripling carbon dioxide emissions from data centers. It’s projected that by 2030, data centers could emit up to 2.5 billion tons of greenhouse gases annually.
On the global stage, concerns about AI extend into international security. China has refused to sign an international agreement to ban AI from controlling nuclear weapons even as Westinghouse announces their nuclear GenAI control system. This reluctance adds a layer of complexity to the global effort to prevent an AI arms race.
Amid these concerns, AI is also offering promising solutions to age-old challenges. Scientists are now leveraging artificial intelligence to predict earthquakes with greater accuracy. When a 4.4-magnitude earthquake struck Los Angeles recently, AI algorithms had already analyzed patterns that could lead to such seismic events.
The influence of AI is markedly evident in the workforce as well. A report reveals that AI can reduce software development time by up to 50%. While this boosts efficiency, it also fuels anxieties about job security among developers and prompts a broader discussion about the future of work.
Automotive giant Ford has filed a patent for technology that could listen to in-car conversations to serve targeted advertisements. While this innovation could open new revenue streams and personalized user experiences, it also raises privacy concerns. In a related story, we learned that human drivers are to blame for the most severe Waymo autonomous collisions.
In education, we learned that access to premium AI services has become a significant concern among students. Those able to afford advanced AI tools are gaining a noticeable advantage over peers relying on free versions. In a related development, Harvard University reported that student engagement doubled when a tailored AI tutor was integrated into a physics course. Similarly, professors at the University of Delaware use AI to create personalized study tools, such as flashcards, by identifying key lecture themes. Finally, The University of California, Berkeley, announced plans to offer an AI-focused Master of Laws degree.
In politics and government, eight U.S. senators have called for a federal antitrust investigation into providers of generative AI content. They express concerns that a few dominant players could stifle competition and innovation in this rapidly evolving field. Meanwhile, federal agencies have met the talent benchmarks the Government Accountability Office sets for AI personnel and management.
Turning to business news, Microsoft is reportedly laying off approximately 650 employees from its gaming division as the tech unemployment rate reaches a four-year high. On a more optimistic note, Philips’ CEO announced plans to expand operations in India, focusing on integrating AI into healthcare solutions. This expansion aims to leverage AI to improve patient outcomes and streamline healthcare services. Additionally, a recent study reveals that Generation Z increasingly turns to AI for financial advice.
In media and entertainment, Illinois has joined a national movement supporting the addition of Surgeon General warnings on social media platforms. Author George R.R. Martin has spoken out about his lawsuit against an AI company, emphasizing the need for clear rules to protect creative content from unauthorized AI use. In the music industry, Will.i.am of the Black Eyed Peas, shared his perspective on AI’s role in music creation. He believes that while AI can assist in the process, human creativity remains irreplaceable. He stresses that artists are the “ultimate creators” even as Audible announces plans to replicate audio narrator’s voices.
Travel is another sector that is experiencing AI’s influence. A recent survey found that more than 22% of travelers have used AI to plan or assist with their journeys, marking a 40% increase in the past year.
The FDA has granted clearance for DeepWell’s biofeedback software development kit in healthcare and biotechnology. Additionally, the FDA has established a new Digital Health Advisory Committee to address the integration of AI in healthcare, ensuring that innovation aligns with patient safety and regulatory standards. Proprio completed 50 surgeries using its AI-powered Paradigm platform in surgical technology, unveiling a substantial dataset that could revolutionize surgical procedures through enhanced precision and real-time data analysis. Researchers have also introduced CancerLLM, a large language model specifically designed for the cancer domain. This AI model could significantly improve diagnosis and treatment planning by integrating specialized cancer knowledge into healthcare systems. Moreover, MIT and Harvard developed ScribblePrompt, an AI tool that segments medical images in seconds, reducing annotation time by 28% and potentially accelerating medical research and diagnostics.
Finally, in the startup arena, Glean closed a $260 million funding round and launched AI solutions for platforms like Zendesk and Salesforce. Yale University also announced it will invest over $150 million to support AI development, highlighting a commitment to advancing research and fostering innovation in artificial intelligence.
That is it. Stay tuned for more news next week. I APPRECIATE ALL THE READERS. Help spread the word. I put these newsletters together so productive humans like you can stay on top of the latest AI stories shaping our world.
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