OpenAI dropped development of GPT-4-Turbo mid-2023, as CEO downplays device rumor
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Top stories today:
- OpenAI dropped development of GPT-4-Turbo mid-2023
- U.S.-China: new restrictions on AI chip exports announced
- X testing mandatory $1/year fee for new users to combat bots
- SBF’s defense says Singh’s testimony has faults
- China GDP +1.3% QoQ / 4.9% YoY in Q3, higher than expected
- Israel, Hamas trade accusations for Gaza hospital explosion
0. Data and calendar
All values as of 6 AM ET / 3 AM PT, other than S&P500 close (4 PM ET / 1 PM PT).
All times are ET.
1. OpenAI dropped development of GPT-4-Turbo mid-2023, as CEO downplays device rumor
The goal of GPT-4-Turbo was to reduce cost and increase speed, but the project was halted due to the model, codenamed “Arrakis”, having low quality.
Development had started in late 2022 and was halted by the middle of 2023.
OpenAI could be developing a new version of GPT-4-Turbo. - The Information
Our view: this highlights OpenAI vulnerabilities and the fair odds of someone like Google developing better models
Prediction markets, in fact, estimate a 67% chance of Google’s Gemini beating GPT-4 on release:
In other OpenAI news…
2. New restrictions on AI chip exports to China announced
4. X testing mandatory $1/year fee for new users in NZ and Philippines, in attempt to combat bots
In Sep., Elon hinted at charging all users a “small monthly payment.”
Unlikely that this feature will be expanded globally or affect existing users.
X traffic is -14% YoY, says Similarweb, despite X’s claims to the contrary
TikTok, Instagram, and Facebook lead in U.S. mobile users
5. SBF’s defense says Singh’s testimony has faults, but fraud evidence remains overwhelming
Nishad’s hazy memory: Nishad Singh, head of engineering and 7% owner of FTX, admitted he said his memory was hazy in June 2022.
Still, Nishad confirmed he and Wang coded the “allow_negative” function back in 2019, allowing Alameda (and only Alameda) to withdraw up to $65B in customer deposits.
SBF repeatedly denied this in public, which the prosecution argues is clear case fraud. - The Verge
6. China GDP +1.3% QoQ / 4.9% YoY in Q3, higher than expected
Expected GDP 1.0% / 4.4%.
China needs 4.4%+ in Q4 to reach its 5% goal for 2023.
Property investment -9% YTD.
Unemployment rate 5% in Sep., retail sales +5.5%, industrial output +4.5%. - Bloomberg
7. Israel: Biden suggests Palestinian rocket caused Gaza hospital explosion, as Arab leaders cancel summit
Unverified videos suggest the explosion happened as Palestinian rockets were being launched:
But it’s important to note that X footage can be unreliable, especially as Community Notes can take many hours to show up:
200-500+ dead in Gaza hospital, according to Palestinian authorities.
U.S. military response on the table if Hezbollah attacks.
U.S. thwarted drone attack on troops in Iraq.
Biden may request $100B in Israel, Ukraine, border aid package.
Jack Lew appointed as ambassador to Israel, faces Senate approval.
Starlink: Israel says it is discussing wartime backup internet.
Students seek firing of professor who called Hamas attack “exhilarating.”
College donors pressure universities to act.
X now requires community notes to include sources.
8. S&P500 earnings expected to +1.3% YoY in Q3, after 3 quarters of decline
9. Sam Lessin’s 84-page presentation on VC: stay away from factory-farmed unicorns, .AI companies
Lessin is still bullish on capital-efficient SaaS, $100B+ platform plays
Read more: 84-page presentation on Docsend.
10. Interesting videos, posts, and memes
11. Other headlines
ASML revenue +16% to €6.67B.
Microsoft 365: Amazon buying 1M seats for $1B over 5 years.
Instagram now lets you block it from collecting data throughout web.
Patreon acquires Moment, livestream platform for events.
Windows 11 installed on 400M monthly active devices.
Pencil 3 unveiled by Apple: USB-C, $79.
Sidebar is a leadership program that accelerates your career.*
Meet Upway - The #1 Certified E-Bike Expert.*
Tech & law
IRS to test free online tax filing in 13 states.
Ukraine using secretly-supplied U.S. longer-range missiles.
Russian missiles strike Zaporizhzhia, Dnipro.
DOD releases footage of Chinese fighters’ alleged risky, coercive behavior.
Five Eyes intelligence chiefs accuse Chief of IP theft.
Putin praises Xi, Norther Sea route investments, during trip to China.
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