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    AI Revolution: Top Lessons from OpenAI, Anthropic, CharacterAI, & More

    enSeptember 25, 2023

    Podcast Summary

    • Discussions on the AI revolution and its implicationsThe AI revolution is underway, with advancements in technology and a shift towards cloud services. It's an exciting time to innovate in this space, with significant opportunities and challenges to address.

      That we are at an inflection point in the world of digital information and artificial intelligence (AI). The pace of innovation is faster than ever before, and companies are shifting from building their own infrastructure to leveraging cloud services. The internet era brought us universally accessible information, and now we are entering the era of universally accessible intelligence. The AI revolution is here, but there are still many questions to be answered, such as the economics of AI, the importance of user experience, and whether scaling laws will continue. At a recent event called AI Revolution in San Francisco, influential founders from OpenAI, Anthropic, CharacterAI, and Roblox, among others, discussed these topics. Martin Casado, a general partner at a16z, emphasized that now is a great time to start or join a startup in the AI space, as there is still significant opportunity for innovation. Despite the long history of AI, we have made tremendous progress, and it's time to move beyond the episodic narrative of summers and winters and embrace the potential of this transformative technology.

    • Economics of AI for startups: High investment, low marginsStartups face challenges in AI due to high investment needs, human competition, and uncertain ROI

      While AI has made significant strides in solving complex problems and surpassing human capabilities in certain areas, the economics for startups in this field have not been favorable. Many traditional AI use cases require high levels of accuracy in the long tail of the solution space, which can be challenging for startups due to the need for significant investment and the decreasing value as the amount of investment increases. Additionally, the competition for most AI use cases is often the human brain, which is incredibly efficient at tasks like perception. This can lead to a "dreaded AI mediocrity spiral," where startups struggle to grow and end up with lower margins and higher costs due to the need to hire human experts to achieve the required level of accuracy. Despite the advances in AI, the economics have yet to shift in a way that significantly benefits startups, leading to the value accruing to larger companies.

    • The Advantage Shifts to Startups in the Current AI LandscapeIn the current AI landscape, startups can compete with large companies due to the shift towards creativity, companionship, and copilot roles, the iterative nature of human-AI interaction, and the decentralization of the human loop. Understanding large markets, adapting to feedback, and competing with the silicon stack are key requirements.

      While large companies have historically had an advantage in implementing and monetizing AI technology due to economies of scale, the current wave of AI, specifically Language Models (LLMs), is different. These models are being applied to massive markets like white collar work and creativity, and correctness is less of an issue due to the iterative nature of the human-AI interaction. Additionally, the human loop has moved out of central companies and into the hands of users, reducing variable costs. Furthermore, the silicon stack is now more competitive than the carbon stack for certain tasks, such as creative language processing. This shift has led to the emergence of viable businesses in the 3 C's: creativity, companionship, and copilot. While the challenges that made it difficult for startups to build AI companies in the past no longer apply, the current model still requires a deep understanding of large markets, the ability to adapt to iterative feedback, and the ability to compete with the silicon stack in specific areas.

    • AI-driven cost and time savings in various industriesAdvancements in AI technology are leading to significant economic dislocation, with cost and time savings in industries like art, law, and more, making it a game-changer

      The advancements in large language models and AI technology are leading to significant cost and time savings compared to traditional methods in various industries. Martine, in the example, discussed how creating an image of herself as a Pixar character using AI models costs a fraction of what it would to hire a graphic artist. Similarly, using AI to analyze legal briefs is much cheaper and quicker than hiring a lawyer. The cost and time differences are several orders of magnitude. This economic dislocation is a sign of a major market transformation, and we could be on the brink of a new epoch in compute, following the microchip and the Internet. The capabilities of these technologies are not just impressive, but the economics make them a game-changer. Companies are already seeing rapid growth as a result. While it may still be early days, the potential for this technology to revolutionize industries is enormous.

    • The potential of large language models to transform industriesAdvancements in large language models are driving down costs, leading to a new wave of transformative companies whose forms we may not yet fully understand.

      The advancements in large language models are bringing down the marginal cost of creation to unprecedented levels, paving the way for a new wave of iconic companies whose forms we may not yet fully understand. This was evident during the early days of OpenAI when co-founder Dario Amodeo expressed his confidence in the potential of these technologies to scale, despite skepticism from others. The moment of realization came with the release of GPT 2 in 2019, which demonstrated the ability to generate coherent text based on input, even if the quality was far from perfect. OpenAI's team saw this as the beginning of something transformative, as the objective of predicting the next word offered endless possibilities for improvement. This belief led to the development of GPT 3, which significantly outscaled previous efforts. The economics of these models are too compelling to ignore, and while we may not know exactly what form the next generation of groundbreaking companies will take, we can expect them to emerge from this new technological landscape.

    • Scaling machine learning models with limited data and PythonResearchers are optimistic about significant advancements in machine learning through scaling, with potential for massive investments in compute and ongoing innovation.

      The surprising performance of machine learning models, specifically Python programming, with limited curated data, suggests the potential for significant advancements through scaling. Researchers like Noam Shazir shared this optimism, emphasizing the potential for massive investments in compute to further improve these models. Despite the need for additional breakthroughs, the consensus is that there's still a long way to go in the scaling laws, with many benefits to be gained. Noam, for instance, anticipates the availability of massive compute power and ongoing innovation, even without fundamental breakthroughs. OpenAI's Meera Muradi echoes this sentiment, acknowledging the potential for further advancements as we continue to scale models across the axes of data and compute.

    • Entering a new era of universally accessible intelligenceThe era of universally accessible intelligence is upon us, with impressive capabilities, scalability, and decreasing costs leading to massive innovation and democratization of AI technology

      We are on the cusp of a new era where universally accessible intelligence becomes a reality. This is not far from the Wright Brothers' first airplane moment, where we have something that works for a large number of use cases and is scaling incredibly well. The internet was the dawn of universally accessible information, and now we are entering the era where anyone can access intelligent solutions. The current capabilities of AI systems are already impressive, with the ability to process a quarter of a trillion operations per second per person. However, not everyone on Earth will have access to this technology due to various reasons. But as the technology improves and becomes more accessible, it will lead to a massive amount of innovation, making what is possible for large corporations accessible to individuals in academic labs or even garages. The computation required for this technology is not expensive, with operations costing only 10 to the negative $18 these days. With the capacity to scale these things up by orders of magnitude, the biggest bottlenecks in demonstrating that the scaling laws continue holding are data, compute, and algorithmic improvements. Even without significant algorithmic improvements, the scaling laws are expected to lead to amazing improvements. However, the most significant factor is the increasing investment in this technology, which will lead to even more significant advancements.

    • Advancements in AI technology leading to more capabilities and costsAI advancements lead to increased capabilities, but costs may not significantly increase due to scaling laws, allowing for high-volume inference at low cost.

      The advancements in AI technology, specifically the increase in compute power and the move towards lower precision, are leading to a significant jump in capabilities. This could result in models costing billions of dollars by 2025. However, the model sizes won't increase much due to the scaling laws, which state that data and model size should increase at a lower rate than compute. This means that inference costs won't get significantly more expensive. Companies like Roblox, which own their infrastructure, can take advantage of this to offer high-volume inference at low cost. The future of AI could see large models dominating or a fragmented landscape with specialized models. The silicon industry's history of generality versus specialization could provide some insight. Ultimately, AI systems will take on more work, but humans will still need to provide direction and guidance.

    • Building fine-tuned solutions for specific disciplinesCompanies need a range of models for various use cases and optimizing UX is crucial for user engagement and adoption.

      While large language models like the ones discussed are powerful and capable, they may not always be the best fit for every use case. Companies may need a range of models to cater to various industry requirements and specific use cases. Building good products on top of these models is a significant challenge. Furthermore, the importance of user experience (UX) in making these technologies accessible and engaging to users cannot be overlooked. While the underlying technology may be the same, the way it is presented and the user experience around it can make a big difference in adoption and usage. Companies like Roblox, with numerous end-user applications, may need to focus on building a suite of models and optimizing UX to cater to their unique needs. Additionally, the potential for personalized recommendations and real-time social graph features, as seen in companies like Netflix and TikTok, could be game-changers in the Roblox ecosystem. Overall, the focus should be on building fine-tuned solutions for specific disciplines, while keeping UX at the forefront to maximize user engagement and adoption.

    • Redefining human-computer interactionAI is transforming human-computer interaction with copilots that communicate using natural language and blend text, voice, and visual modalities, making digital information more accessible and engaging.

      As AI technology continues to evolve, there will be a growing emphasis on creating more interactive and multimodal experiences that seamlessly integrate with our daily lives. This includes the development of copilots that can assist us in various ways, from real-time consumer applications to more professional settings. These copilots may communicate with each other using natural language and could even take the form of virtual people or entire teams. The future of human-computer interaction may involve a blend of text, voice, and visual modalities, allowing for a more comprehensive understanding and engagement with digital information. However, it remains to be seen whether natural language will be sufficient for interfacing with these advanced systems or if more traditional computer interfaces will still be necessary. Regardless, we are currently at an inflection point where we are redefining how we interact with digital information, and it is important to make these tools and technology accessible to as many people as possible to explore their potential applications and implications. Ultimately, AI is poised to continue disrupting the world as we know it, and it will be up to us to navigate these changes and adapt to the new possibilities they bring.

    • Jevons Paradox: More Technology, More JobsTechnological advancements may displace some jobs initially, but the long-term trend is towards increased productivity, new jobs, and demand for creative assets and work automation.

      Despite concerns about job displacement due to technological advancements, there is often an increase in demand for compute and the creation of new jobs. This phenomenon is known as Jevons Paradox. The speaker believes that the demand for creative assets and work automation is elastic, meaning that as we produce more, people consume more, leading to increased productivity and new opportunities. This trend has been seen with the microchip and the Internet, and it's expected to continue with AI. While there may be initial dislocations in the labor market, the long-term outlook is one of expansion and new jobs. Listeners are encouraged to share the podcast and leave reviews to help it grow.

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    Hacker Saket Modi Returns: New Cyber Risks, Identity Thefts, Deep Fake Horrors | TRS 374
    Check out BeerBiceps SkillHouse's Video Editing Course - https://bbsh.in/bb-launch-yt Use my referral code OFF50 to get a 50% Discount on a standard membership subscription. Valid Upto 15th January 2024 Only. Follow BeerBiceps SkillHouse's Social Media Handles: YouTube : https://www.youtube.com/channel/UC2-Y36TqZ5MH6N1cWpmsBRQ Instagram : https://www.instagram.com/beerbiceps_skillhouse Website : https://bbsh.in/bb-launch-yt For any other queries EMAIL: support@beerbicepsskillhouse.com In case of any payment-related issues, kindly write to support@tagmango.com Follow Saket Modi's Social Media Handles:- Instagram: https://www.instagram.com/saketm0di/ X: https://twitter.com/saketmodi_ LinkedIn: https://www.linkedin.com/in/samodi/ Website: https://www.safe.security/leadership/saket-modi/ Link to our blog: https://beerbiceps.com/ This podcast was recorded on 19th December’2023 at The Ranveer Show studio. In this episode of The Ranveer Show, we have a TRS all-star Saket Modi with us. He is an entrepreneur, the co-founder and CEO of Safe Security, an information security company involved with securing government and corporate web services from being an engineer to helping tech startups in Silicon Valley with their cyber security processes to even helping the Indian Government. This episode was all about understanding artificial intelligence and the future of technology. We will talk about the importance of cybersecurity and how a small lenient step can harm us adversely. We also talked about the in-depth working of ChatGPT, Machine Learning and LLM. Along with this, we will discuss the evolution of artificial intelligence and robotics in the coming future. Technology geeks, this is the podcast for you all. If you love our technology and science-based podcasts, you’re going to love this one. I hope you enjoy this conversation and please let us know your thoughts in the comments. (0:00) - Saket Modi x Ranveer Allahbadia begins (3:30) - His profession (7:29) - Cyber security (12:25) - How GPT works? (32:20) - Machine Learning (40:05) - Large language model (LLM) (52:02) - AGI (57:10) - Deepfakes (1:00:20) - ChatGPT’s next 5 years (1:14:40) - Robotics (1:21:50) - Thank you for watching (1:23:14) - End of the podcast

    Gaming Is A Powerful Learning Tool, And It Comes In Different Shapes: Books, Toys, Sports, Music, Video Games, and Now Virtual Reality | A conversation With Rafael Brown And Carey D'Souza | Audio Signals Podcast With Marco Ciappelli & Sean Martin

    Gaming Is A Powerful Learning Tool, And It Comes In Different Shapes: Books, Toys, Sports, Music, Video Games, and Now Virtual Reality | A conversation With Rafael Brown And Carey D'Souza | Audio Signals Podcast With Marco Ciappelli & Sean Martin

    Learning should be fun, yet most of the time is boring — especially when we associate learning with the school system. The truth is that we are constantly learning, and when is not imposed education for a grade and a piece of paper, we are actually doing it right.

    In this episode, we continue our conversations about gaming, technology, past, and future with our friends Rafael and Carey. As usual, we have no plans, and we go with the flow touching on technology, philosophy, storytelling, creativity, and the future we envision for our digital society. Oh, yes, and everything in between.

    Join us as we talk about gaming as a learning tool: from books to toys, sports, music, video games, and virtual reality.

    _____________________________

    Guests
    Rafael Brown
    CEO/Founder at Symbol Zero
    On LinkedIn | https://www.linkedin.com/in/rafaelbrown/

    Carey D'Souza
    CEO and Co-Founder at IAMPASS [@iampassHQ]
    On LinkedIn | https://www.linkedin.com/in/careydsouza/
    On Twitter | https://twitter.com/carey_dsouza
    _____________________________

    This Episode’s Sponsors

    Blue Lava: https://itspm.ag/blue-lava-w2qs

    _____________________________

    Resources

    Listen to the previous episodes
    Episode 1: https://itsprad.io/audiosignals-34
    Episode 2: https://itsprad.io/audiosignals-43
    Episode 3: https://itsprad.io/audiosignals-46

    _____________________________

    For more podcast stories from Audio Signals: 
    https://www.itspmagazine.com/audio-signals

    Are you interested in sponsoring an ITSPmagazine Channel?
    👉 https://www.itspmagazine.com/sponsor-the-itspmagazine-podcast-network

    Cryptocurrency Decoded: What happened with FTX should be a lesson to understand CRYPTO, not run from it

    Cryptocurrency Decoded: What happened with FTX should be a lesson to understand CRYPTO, not run from it

    On this episode of AI: Decodes the System, AI does a solo episode where she decodes the topic of Cryptocurrency. If you want AI to decode a topic, please send an email to ai@aidecodes.com.   

    What is Cryptocurrency? If you've been hearing a lot about cryptocurrency recently and are wondering what it is, you're in the right place. In this podcast episode, we will discuss what cryptocurrency is, how it works, how you can use it, and some of the benefits and drawbacks of using it. By the end of this conversation, you'll have a better understanding of what cryptocurrency is and whether or not it's something that you might want to start using yourself!

    AI: Decodes the System: Website, Instagram, Twitter, Facebook, and TikTok

    Help me become the #1 (number one) podcast and podcaster for technology, public policy, data, law, and culture. Subscribe, download, and share.

    If you like the content, feel free to support the show by donating to my Patreon account at the link below: https://www.patreon.com/Aidecodes

    Support the show

    Help me become the #1 (number one) podcast and podcaster for technology, public policy, data, law, and culture. Subscribe, download, and share.

    If you like the content, feel free to support the show by donating to my Patreon account at the link below: https://www.patreon.com/Aidecodes

    The Creativity of Designing Edge Solutions for the Enterprise with Nick Barcet, Sr. Director of Technology Strategy at Red Hat

    The Creativity of Designing Edge Solutions for the Enterprise with Nick Barcet, Sr. Director of Technology Strategy at Red Hat

    Today’s episode features an interview between Matt Trifiro and Nick Barcet, Senior Director of Technology Strategy at Red Hat. 

    Nick joined Red Hat in June 2014 and now leads the team that helps decide the future of technologies, currently focusing on Telco, Edge, and AI/ML. 

    In this interview, Nick discusses what it means to set edge strategy for Red Hat, where he’s seeing the most edge-related demand right now, why the future of edge must be open, and the floating IP solution he’s constructed in order to get reliable internet while he sails around the world on his boat.

    Key Quotes: 

    “When we’re talking about a new field of interest, what people are saying is still not yet normalized. We still have problems with definitions and there is a lot of confusion. If I take the average person in the IT field and ask them, ‘What is the edge?’ The answer is generally linked to mobile phones and 5G. And while these are important components, they are not the beginning nor the end of it. So I think it's super interesting to be in this early phase and trying to bring more clarity to the fog in which we are moving.”

    “[Three areas] where we see a lot of edge-related demand right now are: In telco–they are busy deploying 5G, which requires an edge infrastructure for it to be performant. Then automotive–lots of evolution is happening in the auto industry…And then the general industrial environment–whether it's oil and gas or standard factories–is really, really keen on improving their processes by deploying edge infrastructure. But it doesn't stop there. We see opportunities happening in retail, in healthcare, in the public sector, it’s really, really varied.”

    “When you're dealing with open-source software, there is never a case where a single company offers that piece of software, there are generally multiple options, and that's another way of protecting you from having to redo everything from scratch. So that's why I think that the edge cannot be fruitful--cannot bring maximum benefit--without being open, because if you are not protected against those risks, you're going to have a very, very costly edge.”

    “The evolution of networking…is going to change a lot of things on how we approach the networking problem…The availability of network is going to become a problem of the past. If we look at 20 years from now, we have hope to have instantaneous communication--as in quantum--we could have instantaneous communication from any point to any point.”

    “The other evolution that is really interesting is how we are using processing power in more specialized units. The fact that you have DPUs available in SmartNICs and we can use those to do things in parallel to what the main CPU is doing. I believe that this specialization of resources is going to enable a new generation of software that provides for problem-solving quicker and much cheaper than ever before. We've seen that revolution happen through GPU's, but we are only at the beginning of this revolution, and it's going to go through all kinds of discoveries.”

    Sponsors

    Over the Edge is brought to you by the generous sponsorship of Catchpoint, NetFoundry, Ori Industries, Packet, Seagate, Vapor IO, and Zenlayer.

    The featured sponsor of this episode of Over the Edge is Vapor IO, the leader in edge computing. We want to be your solution partner for the New Internet. Learn more at Vapor.io

    Links

    Connect with Matt on LinkedIn

    Follow Nick on Twitter