Bulls’ AI: funding artificial intelligence

OpenAI is becoming a force unlike any other startup due to its immense size and influence in the tech industry. With a possible valuation of $150 billion, it demands massive investments that only a few can provide. In the last year and a half, $95 billion has been invested in AI startups, showing the rapid growth and interest in this field. This situation is changing the startup landscape in Silicon Valley, as OpenAI sets new standards and expectations for funding and growth, distinguishing itself from traditional startups that typically do not reach such high valuations or require such large investments.

Investing in companies that develop advanced AI like OpenAI requires significantly more funding compared to traditional startups, often exceeding a billion dollars. Most venture capital firms lack the necessary resources, leading tech giants like Microsoft and Amazon to fill the gap with their massive investments. While VCs feel sidelined, they can still support companies that build products using these AI models. Although some venture capitalists are willing to invest large sums, the trend indicates a shift where big tech firms are becoming the main financial players in the AI space. This dynamic may alter the landscape for future investments, as these large companies also provide critical cloud computing resources essential for developing AI models.

AI model training costs are rising significantly, with estimates showing it could reach billions soon. While some believe that more investment leads to better AI due to scaling laws, physical constraints like energy and hardware needs may slow progress. This situation is pushing developers to innovate, creating more efficient software and smaller, specialized models like OpenAI's recent strawberry model, which focuses on reasoning rather than text generation. This approach can yield effective solutions at lower costs, reflecting the creative adaptability in the tech landscape.

Innovations in AI are leading to various models that cater to different problems, creating a competitive landscape. OpenAI remains a strong player due to its early start and robust support from Microsoft, but it may not dominate forever. As companies like Google and Elon Musk’s X AI emerge, a diverse range of AI models is likely to develop, promoting healthy competition in generative AI. Parallelly, the Pentagon faces challenges in nuclear strategy as global relationships shift and complexity increases. Decades of nuclear arsenal reductions could be reversing as strategists rethink the existing nuclear order, marking a new era reminiscent of Cold War tensions. This backdrop highlights the interconnectedness of technological advancements and geopolitical strategies, emphasizing the need for innovation alongside caution in both fields.

The world faces a new nuclear threat as China rapidly expands its arsenal, potentially surpassing Russia's and America's. With China expected to reach around 1,500 warheads by 2035, and growing ties between China, Russia, and other nuclear states like North Korea and Iran, the situation is concerning. There's fear that if conflicts arise, such as a war in Europe involving NATO and Russia, China could take advantage of the distraction to invade Taiwan, while North Korea might attempt to reunify Korea. This raises doubts about America’s ability to manage multiple crises simultaneously and effectively deter these threats.

Nuclear arms control between the US and Russia is at a critical juncture, especially with the New START Treaty set to expire in February 2026. Currently, both countries are not thoroughly verifying their nuclear arsenals, increasing the chance for misunderstandings and errors. This situation poses a significant risk of miscalculation. In response, the US is pursuing two approaches: expressing interest in arms control and preparing to potentially expand its nuclear stockpile. This could happen quickly, by reactivating weapons stored in reserve for immediate deployment on missiles, submarines, or bombers, which might lead to a rapid increase in the available nuclear arsenal. If a greater total stockpile is desired, the US could invest time and resources into building new weapons. Unchecked nuclear capabilities raise concerns for global safety, emphasizing the need for effective arms control agreements.

Americans are modernizing their nuclear weapons, building new bombers, submarines, and ICBMs, which means more nuclear capabilities. As tensions grow with China and Russia, there is a risk of a new arms race similar to the Cold War. Some believe the U.S. has enough nuclear weapons for deterrence, while others warn against escalating numbers. The hope is that lessons from the past will help avoid a dangerous buildup of weapons that could threaten global safety as rivalries deepen.

Astrology is increasingly influencing how people perceive important events like elections. Astrologers like Helena Woods analyze the positions of planets to determine the potential outcomes for candidates. For instance, Trump's and Kamala Harris's charts suggest significant changes coming for both. With many young Americans now believing in astrology, its role in understanding political futures is expanding, showing how cosmic events might parallel crucial milestones in politics and life. This revival reflects a growing curiosity among younger generations towards astrology, not just as a mystical practice but as a framework for interpreting the world and future scenarios, including elections.

Astrology has become a popular tool during election cycles, with practitioners like Evan Nathaniel Grimm gaining massive followings by making predictions about political events. Many astrologers offer private readings and their predictions often attract paid audiences, contributing to a growing global astrology market valued at billions. However, the field is polarized, causing some astrologers to face backlash over their political interpretations. Helena, another astrologer, forecasts significant turmoil in the U.S. leading to increased division and conflict, particularly around 2025. She suggests that this unrest may not settle down until 2033. As astrology gains traction, it highlights how societal issues can influence personal beliefs and audience reactions, making astrology an interesting blend of entertainment and insight during turbulent times.

More than half of the world's people are participating in elections around the globe this year, highlighting a significant moment for democracy. Over 70 elections are taking place, showing that many nations are engaged in deciding their leadership and future. To discuss the implications of these elections, Sandy Minton-Bettos, our editor-in-chief, will be hosting a live event in New York. It’s a great opportunity to reflect on how these elections can shape democratic processes and impact societies worldwide. For those interested, subscribers to The Economist can easily sign up to hear more about this important topic. Engaging in discussions about elections is crucial, as they affect our lives and the direction of our countries. Stay tuned for insights and discussions about the significance of voting and democratic participation as we navigate through these election periods.