🚀 'GPT-5' to be 100x more powerful

Also: Nvidia AI antitrust investigation escalates

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Evolving AI
September 04, 2024

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Welcome, AI enthusiasts

OpenAI’s next-generation AI model, dubbed ‘GPT Next,’ is expected to be 100 times more powerful than its predecessor GPT-4. Meanwhile, the Department of Justice has reportedly issued subpoenas in a growing antitrust probe over Nvidia's AI dominance, and OpenAI is moving ahead with its plans to build its own AI chips. Let’s dive in!

In today’s insights:

  • 'GPT-5' to be 100x more powerful

  • Nvidia AI antitrust investigation escalates

  • OpenAI plans to build its own AI chips with TSMC

Read time: 3 minutes

🗞️ LATEST DEVELOPMENTS

Source: ITmedia, Inc.

Evolving AI: OpenAI Japan CEO revealed that ‘GPT Next’ will be 100x more powerful than GPT-4 at KDDI Summit 2024.

Key Points:

  • OpenAI Japan projects a 100-fold performance leap for its 2024 AI model.

  • “Strawberry” and “Orion” are two new AI systems in development, potentially setting the stage for ‘GPT Next’.

  • Microsoft and OpenAI leaders have hinted at significant AI advancements by the end of 2024.

Details:

At the KDDI Summit in Japan, OpenAI Japan CEO Tadao Nagasaki has shared some more insights in what we can expect for GPT-5, or currently dubbed as ‘GPT Next’. Earlier this year, hints about a more advanced AI model were given by OpenAI executives and researchers. Microsoft’s CTO Kevin Scott presented a similar projection at the Build developer conference, and an OpenAI researcher at the Viva Technology festival referred to "GPT-Next" as far superior to GPT-4. The upcoming model might build on two new AI systems currently in development: "Strawberry," with enhanced math and coding skills, and "Orion," potentially the true successor to GPT-4, leveraging high-quality data generated by Strawberry.

Why It Matters:

The graph from OpenAI Japan suggests a 100-fold increase in performance. But what does this really mean? Is it a measure of the model’s intelligence, as hinted by the Japanese text on the left, or does 'performance' refer to enhanced computational power, combined with better architecture and learning efficiency? It's challenging to predict the outcomes, as humans often struggle to comprehend exponential growth, but we are undoubtedly entering a period of fascinating developments.

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Source: The Verge

Evolving AI: Nvidia faces increased scrutiny from the Department of Justice over its dominance in AI hardware, with subpoenas sent to Nvidia and others.

Key Points:

  • Department of Justice probes Nvidia’s AI chip market practices, examining whether it restricts competition.

  • Nvidia loses $279 billion in market value following the subpoena reports.

  • Despite setbacks, Nvidia’s stock remains up over 100% this year due to AI boom-driven sales.

Details:

The Department of Justice has intensified its antitrust investigation into Nvidia’s role as the leading provider of AI chips. Bloomberg reports that subpoenas have been sent to Nvidia and other companies, suggesting regulators are examining if Nvidia has created obstacles for switching to competitors or penalized customers not using its chips exclusively. Following the news, Nvidia’s stock experienced a significant drop, erasing around $279 billion (-9.5%) in market value in a single day, although it remains more than double its value from earlier this year, driven by the ongoing AI boom.

Why It Matters:

The sharp decline reflects rising investor skepticism about AI's growth potential, which has driven stock gains this year. Concerns over slower returns on major AI investments have also put pressure on key players like Microsoft and Alphabet, whose shares dipped following their July quarterly reports. This trend may signal a shift in market sentiment towards more cautious optimism in the rapidly evolving AI sector.

Source: TSMC

Evolving AI: OpenAI plans to develop its own AI chips using TSMC's future 1.6 nm A16 process, aiming for more cost-effective operations and reduced dependency on Nvidia's hardware.

Key Points:

  • OpenAI shifts from using TSMC's N5 process to the upcoming A16 node for custom AI chips.

  • The A16 node, still in development, will use advanced technology like backside power delivery.

  • OpenAI may collaborate with companies like Broadcom or Marvell for this chip project, potentially with Apple's involvement.

Details:

OpenAI is accelerating plans to design its own AI chips to reduce reliance on Nvidia's expensive AI servers. It’s booking production slots with TSMC for their upcoming 1.6 nm A16 process, set to be the first node with backside power delivery technology. Although this chip is years away from mass production, this move could be strategic for cost and performance advantages in the AI race. The report suggests potential partnerships with Broadcom and Marvell, who are new to such advanced nodes, and even speculates collaboration with Apple, a company with AI ambitions of its own.

Why It Matters:

OpenAI has been planning to set up its own infrastructure for a while, including a $100B supercomputer with Microsoft that might even need nuclear power plants to run. Developing its own chips is a natural next step, though it requires a heavy investment in both money and time. This move shows OpenAI is searching for new paths as it feels too reliant on Nvidia right now.

💡 Tip of the Day

The generative AI race is heating up as another Chinese firm, after Kling.ai, has launched a new text-to-video model called MiniMax that delivers phenomenal results. You can try Video-01 for free at hailuoai.com/video by registering with any mobile number, even non-Chinese ones. It’s time to get creative!

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