😲 +25% of Google’s code is now written by AI

Welcome, AI enthusiasts

In Google’s Q3 earnings call, CEO Sundar Pichai shared that over a quarter of new code at Google is now created by AI. Recently, Sam Altman and the OpenAI leadership team discussed their thoughts on AI’s future in a Reddit AMA. Plus, two companies have released an AI-powered version of Minecraft that runs in real time. Let’s dive in! 

In today’s insights:

• Over 25% of Google’s code is now written by AI

• OpenAI leadership takes on Reddit AMA

• "Oasis" is the first real-time AI-generated game that is playable in any significant way

Read time: 4 minutes

🗞️ LATEST DEVELOPMENTS

GOOGLE
😲 Over 25% of Google’s code is now written by AI

Evolving AI: Google reports that AI-generated code now makes up over 25% of its new software, marking a significant milestone in its ongoing AI integration efforts.

Key Points:

• Over a quarter of Google's new code is written by AI, as announced in Q3 earnings.

• AI-powered tools are boosting product adoption, cloud revenues, and customer wins.

• YouTube and search segments also benefit from AI, showing strong revenue growth.

Details:

Google is making strides with AI, with over 25% of its new code now being generated by AI. This announcement, made by CEO Sundar Pichai during Alphabet's Q3 earnings call, highlights AI's impact on both productivity and cost savings. AI tools have also driven deeper adoption of Google’s products and helped attract new enterprise customers to Google Cloud. In addition, the company reported record YouTube revenues, attributed partly to AI enhancements in ad targeting and features.

Why It Matters:

Google’s growing reliance on AI-generated code suggests a future where AI plays an even larger role in software development and tech industry workflows. For users, this could mean more advanced, rapidly deployed features—but it raises questions about the future role of human developers in creating code.

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OPENAI
❓️ OpenAI leadership takes on Reddit AMA

Evolving AI: OpenAI's senior leaders recently participated in a Reddit AMA (Ask Me Anything) session, revealing their future plans and other insights. Here’s a summary of everything discussed with OpenAI’s Sam Altman, Kevin Weil, Srinivas Narayanan, and Mark Chen.

GPT-5 and Upcoming Models

• No plans to release a model named GPT-5 this year, though there are significant releases coming later

• Focus is on improving the o1 series and its successors, rather than introducing a GPT-5 right now

GPT vs. o1 Model Series

• OpenAI will keep developing both the GPT and o1 model series

• Expectation that these two series will eventually merge

• Full o1 model will be released soon and offers a noticeable improvement over the current o1-preview

Longer Context Windows

• OpenAI is working on increasing the context window for ChatGPT Plus and GPT-4o

• Current 32k token context window is seen as insufficient for longer tasks, particularly for coding or writing

• Extending the context window is a recognized need, and efforts are ongoing

Image Models and “Render” with GPT-4o

• New text-to-image model is in the works, though no release date has been announced

• o1 models will support image input, along with features like multimodality and tool use in the coming months

• GPT-4o can “render” and generate images directly from text using HTML prompts, with impressive image-to-image capabilities

SearchGPT, Publishers, and Analytics

• OpenAI likes the idea of integrating publishers so they can see how they are cited, though there are no plans for this yet

• SearchGPT is often faster and more efficient than traditional search engines, especially for complex queries

• There is a vision for search to create dynamic, custom web pages in response to user queries

AGI

• OpenAI believes AGI is achievable with current hardware

• Once AGI is achieved, it could accelerate scientific discovery, particularly in health and medicine

• Architecture breakthrough, potentially proposed by existing models, might help achieve AGI

• OpenAI is exploring training models with specific medical literature to improve performance in the field

• HIPAA compliance is being worked on for their enterprise product

Agents and Future Outlook for 2025

• Ability for ChatGPT to perform tasks independently is expected to be a major theme in 2025

• Agents are anticipated to be the next major breakthrough in the GPT product line

• Bold prediction that by 2025, all benchmarks will be saturated

Advanced Voice Mode (AVM) and New Features

• OpenAI is working on loosening restrictions around musical capabilities, including making ChatGPT capable of singing

• Features like Advanced Voice Mode with Vision capabilities and a camera mode are in development, but no timeline for release

• Model’s ability to handle interruptions has improved, which required significant design efforts

Open-Source and Accessibility

• OpenAI acknowledges the importance of open-source models in the AI ecosystem and hopes to open-source more in the future

• Currently focused on providing powerful and safe APIs and services to meet safety requirements

NSFW Content and User Control

• OpenAI believes in giving adults control over NSFW content, though implementing it correctly is complex

• NSFW control is not a top priority at the moment, as other areas take precedence

• OpenAI aims to address this in the future when resources allow

Inference Costs and API Pricing

• Inference costs have been reduced by about 10x over the past year

• Models like GPT-4o-mini are now around 2% of the original GPT-3’s cost

• Trend of lowering costs is expected to continue, including for advanced features like voice

Advice and Use Cases for AI Enthusiasts

• OpenAI encourages using AI tools daily to improve productivity and generate ideas

• Being adaptable and learning quickly are seen as key skills for the future

• Users are using ChatGPT to summarize medical reports and create custom GPTs, such as for course notes or travel recommendations

• Building something interesting and sharing it with others is encouraged to contribute to the AI field

• OpenAI is open to partnerships that help enterprises adopt AI faster

Reducing Hallucinations and Model Improvements

• OpenAI is focused on reducing hallucinations, though it is recognized as a challenging problem

• Models are improving in citing trusted sources, which helps reduce misinformation

• Reinforcement learning is being used to reward accuracy and reduce hallucinations

Multilingual Improvements

• OpenAI is working on improving performance in languages other than English

• GPT-4o represents a significant step forward in handling multiple languages compared to earlier models

• Improving multilingual capabilities remains a priority

ChatGPT’s Early Reception

• OpenAI was surprised by how positively people responded to the early versions of ChatGPT

• Initial product had many limitations, including inaccuracy and lack of features, but still found a strong user base

• Users continued to find value in the prototype, despite its imperfections

EU Regulations

• OpenAI will comply with EU policies, while also hoping for increasingly sensible regulations

• Recognizes the importance of a strong Europe for the world

Why It Matters:

OpenAI gave a sneak peek into its future during a Reddit AMA. The session explained OpenAI's plans in a simple way, showing how they are being open about their strategy. Important points included their focus on safety, better AI models, and new features like using different types of information and creating smart agents. These changes show that OpenAI is still working hard to make AI better and more advanced.

DECART AND ETCHED
👉️ "Oasis" is the first real-time AI-generated game that is playable in any significant way

Evolving AI: AI companies Etched and Decart have built "Oasis," a fully AI-generated video game that runs in real time.

Key Points:

• Decart, an Israeli startup, launched Oasis, an AI model that generates an open-world game, with $21M in funding.

• Oasis generates Minecraft-like gameplay, trained on Minecraft footage without confirmed Microsoft permission.

• The model could pave the way for on-the-fly content generation in future gaming experiences.

Details:

Decart, a startup from Israel, has created Oasis, an AI model trained on Minecraft gameplay videos. Oasis lets players experience an open-world game that is built as they play. The demo looks like Minecraft and is pretty cool, but it still has some problems, like glitches in the graphics and parts of the game changing when they shouldn't. Right now, Oasis runs on Nvidia H100 GPUs, but future versions might use Etched's AI chips to make the graphics even better, maybe even up to 4K resolution.

Why It Matters:

Oasis shows the possibility of AI models generating complex virtual environments and content dynamically. This could influence how games are created, with real-time adaptation to players' actions, enriching personalization. But with unclear legal territory around training data use, it also raises important questions about copyright and ownership—though, is the industry ready for this shift in creative control?

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