Brought to you by:
Top stories today:
- OpenAI releases o1 as its new AI model with “reasoning” abilities
- AirPods Pro 2 gets FDA approval to serve as hearing aids
- Adobe revenue +11% to $5.41B in Q3 FY24, guidance misses estimates
- Global new unicorn count flat in Aug., with 8 +$1B-valued startups
- Meta continues to dominate global VR headset market with 80% share
0. Data and calendar
All values as of 6 AM ET / 3 AM PT, other than S&P500 and NASDAQ close (4 PM ET / 1 PM PT).
All times are ET.
1. OpenAI releases o1 (codenamed Strawberry) as its new AI model with “reasoning” abilities
o1-preview & o1-mini are available for ChatGPT Plus & Team users.
Enterprise and Edu users will get access early next week.
TBD: o1-mini will be available for free but no release date disclosed.
“Completely new optimization algorithm and a new training dataset specifically tailored for it.”
Writing code and solving multistep problems is easier with o1
83% of problems were solved by o1 in an Olympiad exam vs. 13% by GPT-4o.
A “completely new optimization algorithm” is used to train the model.
o1 improves over GPT-4o on a wide range of benchmarks
However, o1 can be slower — it takes 10 secs+ to answer some questions.
o1 costs 3-4x more than GPT-4o to devs
$15 per 1M input tokens on o1-preview vs. $5 on GPT-4o.
$60 per 1M output tokens on o1-preview vs. $15 on GPT-4o.
o1 is more manipulative than GPT-4o
o1 carries a “medium” rating for chemical, biological, radiological and nuclear weapon risk, according to OpenAI.
Our view: this appears to be the 1st large jump in model type and quality since GPT-4 was launched in March 2023
o1 is likely still a Transformers model, possibly with clever chain-of-thought prompting and fine-tuning.
OpenAI is suggesting that o1 is something completely novel, but that could be marketing speech.
We’ll wait to see independent benchmarks and whether other LLM builders launch similar models.
Relatedly, ChatGPT crossed 11M paying users, making $225M+ monthly or $2.7B annually.
There is nothing worse than your backlog keeping you up at night. But don’t worry—we can help you:
Hire the best nearshore engineers.
From Latam’s tech ecosystem.
At 80% off the US sticker price.
We can have you sleeping like a baby in 7 days.
*Disclaimer: We have equity in Athyna.
