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Today’s AI Secret:

• Daily Trending & Featured AI.

• Exclusive: GPT-5’s ambition & challenges.

• Google AI terminates 1,000 outsourced labor jobs.

• SAP to reorganize 8,000 jobs for GenAI.

• Google Chrome releases AI features.

• More AI Quick Heats.

Read Time: 3-5 minutes

SECRET AI

Daily Trending AI.

Secret Featured AI.

SECRET HIGHLIGHT

Exclusive: GPT-5’s ambition & challenges.

Sam Altman, CEO of OpenAI, has been making appearances at various events where he shared important details of GPT-5.

The Progress of GPT-5:

• GPT-4 currently does 10% of the work that humans do, and it's anticipated that GPT-5 will take on 15% to 20%.

• GPT-5 is set to be much better at reasoning and will make big strides in handling a wide range of tasks.

• The trademark for GPT-5 is being registered step by step.

• GPT-5's API is going to get quicker, more dependable, and will cost less to use.

• OpenAI is thinking about including video features in ChatGPT, which many users have been asking for.

The Challenges:

• OpenAI faces a severe GPU shortage for training GPT-5.

• The scarcity of GPUs has forced OpenAI to delay many short-term projects and even discourage the use of ChatGPT to save on GPU resources.

OpenAI’s Ambition:

• OpenAI's CEO, Sam Altman, is raising billions of dollars to establish a global semiconductor foundry network to meet the increasing chip demands for GPT-5 training.

• OpenAI is working to rely less on NVIDIA because it dominates the AI chip market. The company has been talking with Richard Ho, an expert who used to lead Google's TPU team, to make data centers more efficient and to create new chip designs that could reduce OpenAI's costs. They've also shown interest in buying $51 million in chips from Rain AI, a new company making chips that work like the human brain.

The developments at OpenAI, particularly around GPT-5 and the strategic shift in hardware supply, have significant implications for the AI industry. GenAI, and similar entities, must consider the escalating computational requirements and the potential need for self-sufficiency in hardware resources.

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SECRET HIGHLIGHT

Google AI terminates 1,000 outsourced labor jobs.

Alphabet has chosen to terminate its agreement with Appen, a firm crucial in training AI models for major tech companies. This decision is expected to affect around 1,000 subcontracted employees.

The Details:

• The Realationship: Appen played a key role in training artificial intelligence products from Google, including Bard and the Google Search engine.

• Impact on Appen: The contract ending on March 19 is significant since Alphabet accounts for roughly one-third of Appen's revenue. This change greatly impacts Appen, known for training AI models for leading tech firms. A major portion of Appen's overall sales came from Alphabet.

Shift in Industry Focus and Practices:

• The AI industry is evolving, with less emphasis on services provided by companies like Appen.

• The focus is shifting towards more sophisticated AI applications and the increasing use of processors from companies like Nvidia.

• This shift reflects a change in the requirements and methodologies of AI model training.

SECRET HIGHLIGHT

SAP to reorganize 8,000 jobs for GenAI.

SAP SE is heavily investing in generative AI technologies and reorganizing its structure, which will impact 8,000 jobs.

The Details:

• Restructuring Plan: SAP announced a 2 billion euro restructuring plan impacting 8,000 roles. This move is part of a strategy to concentrate on AI-driven business areas.

• Investment in Generative AI: SAP is investing over $1 billion in generative AI, indicating a strong commitment to integrating AI into its business strategies. It also involves investments in AI-powered technology startups through Sapphire Ventures.

• Implementation of the Restructuring: The restructuring will mainly be executed through voluntary leave programs and internal re-skilling measures, aiming to maintain the headcount at current levels through 2024.

GenAI's Impact on the Industry:

• Focus Shift to AI-Driven Solutions: SAP's restructuring and investments signal a significant industry shift towards AI-driven solutions.

• Innovation and Start-up Investments: The substantial investment in generative AI and AI-powered startups suggests a trend where large firms are not only developing in-house AI capabilities but also fostering external innovation ecosystems.

• Workforce Transformation: The emphasis on voluntary leave and re-skilling reflects a broader industry trend where AI integration leads to workforce transformations, requiring new skills and roles aligned with AI and technology advancements.

SECRET HIGHLIGHT

Google Chrome releases AI features.

Google is significantly enhancing its Chrome web browser with new AI-powered features for Mac and Windows users.

The Features:

• AI-Powered Writing Assistant: Chrome will introduce an AI-based writing helper that aids users in drafting various online content, such as business reviews or formal inquiries.

• Tab Organization with AI: An innovative feature will be added to Chrome for automatically organizing and naming tab groups using AI, based on the user's active tabs.

• Generative AI for Custom Browser Themes: Users will be able to create personalized browser themes using a generative AI model, offering a more customized and creative browsing experience.

These updates focus on improving user interaction and efficiency by integrating advanced AI technologies into routine web browsing activities. This move is a part of a broader trend in the software industry, where AI is increasingly becoming a fundamental component of user experience and functionality.

QUICK HEATS

Apple self-driving EV - Apple may release a less advanced self-driving EV by 2028, now targeting partial automation similar to Tesla's Autopilot, rather than full autonomy. Although Level 4 autonomy may come later, the current focus is on features like brake/accelerate assist with driver supervision. Previous plans for a wheel-less, pedal-less car have been deemed unrealistic, with a sub-$100,000 consumer model planned, incorporating Apple's AI processor.

Ex-Nvidia's AI Startup raised $4.7 million - Gaurav Agarwal's startup RagaAI, previously with Nvidia, raised $4.7 million to develop AI diagnostic and repair tools. Backed by pi Ventures, Anorak Ventures, and TenOneTen Ventures, the tool aims to prevent AI flaws in real-time, improving safety in high-risk sectors.

Nepal-born entrepreneur's AI firm lands $200M SPAC agreement for Nasdaq listing - Founded in 2013, Fusemachines is an AI startup that offers a wide range of AI products and services to businesses. The company is preparing to become a publicly traded entity through a $200 million deal with CSLM Acquisition Corp, with the goal of being listed on the Nasdaq under the ticker symbol "FUSE" by the second quarter of 2024. Fusemachines intends to use this opportunity to grow its enterprise product offerings.

The Chinese Startup Leading in Open Source AI Competition - Chinese startup 01.AI, led by AI veteran Kai-Fu Lee, has surpassed Meta's Llama 2 with its open-source AI model, Yi-34B. Gaining traction in global AI rankings, 01.AI aims to develop revolutionary apps using generative AI and has attracted significant investment from Alibaba. Leveraging an "AI-first" development strategy, the company targets international success akin to TikTok.

SoftBank trusts AI will reshape corporate travel - SoftBank Vision Fund 2 led TravelPerk's $104 million funding round, alongside Kinnevik and Felix Capital, to expand AI-driven corporate travel solutions. The company, rebounding with 70% revenue growth in 2023 post-pandemic, looks to automate business travel, contrasting the manual processes of traditional agencies.

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