OpenAI’s latest version of ChatGPT, GPT o1, a nomenclature indicative of resetting the counter clock to 1, and its less costly mini version, represents a watershed moment in the company’s LLM stockpile. Designed to replicate superhuman-level intelligence, the models can already answer questions a lot faster than humans. This series of models will be unlike previous ones. In responding to queries, they utilise a human-like ‘chain of thought’ processing combined with reinforcement learning on specialised datasets and optimisation algorithms.
The model outperforms older models by a significant margin. For example, when tested against GPT-4o at the International Mathematics Olympiad, it scored 83 percent to GPT-4o’s 13 percent. What’s unique about the model is its ability to not only provide step-by-step reasoning for outputs but to show human-like patterns of hesitation during the process, ‘I’m curious about…’ and ‘Ok, let me see’ or ‘Oh, I’m running out of time, let me get to an answer quickly’. The new design has also resulted in a reduced occurrence of hallucinations. Yet, despite their many pros, the models have limitations. For instance, they cannot browse the internet, lack world knowledge, and cannot process files and images.
According to the lead researcher on the project, Jerry Tworek, the next level is for the models to perform similarly to PhD students on challenging benchmark tasks in areas such as physics, chemistry and biology. He assures that the intention here is not to equate AI with human thinking but rather to illustrate the model’s ability to dive cognitively deep. For the company, reasoning is a step up from pattern recognition, which is the design model used with previous versions. Ultimately, OpenAI aims to develop a product that can make decisions and take action on behalf of humans, a venture estimated to cost a further $USD 150 billion. Removing the current kinks in the system will mean that the models can work on complex global problems we face today in areas such as engineering and medicine.
More breakthroughs will also mean reduced access costs for developers and users. According to Chief Research Officer Bob McGrew, developer access to o1-preview is currently $15 per 1 million input tokens (chunks of text parsed by the model) and $60 per 1 million output tokens. GPT -o4 costs $5 per 1 million input tokens and $15 per 1 million output tokens.
Connectly, a startup specialising in conversational commerce through AI-driven personalised messaging has secured $20 million in a Series B funding round. The round was led by Alibaba and included participation from several notable investors, such as Unusual Ventures and Volpe Capital. This new investment boosts Connectly’s total funding to $37.2 million and brings its valuation close to $100 million.
The funds will be used to advance AI research and support Connectly’s expansion into the US and European markets. Additionally, the company plans to strengthen its engineering presence in Greece, aiming to make it a key hub alongside San Francisco. Connectly, a company that uses AI models to help retailers enhance customer engagement and drive sales, has experienced significant growth in the past year.
The successful funding round follows Connectly’s launch of its advanced AI recommendation tool, ‘Sofia AI,’ and its expansion into the US market. The partnership with Alibaba is expected to accelerate Connectly’s global reach further, integrating its AI solutions into Alibaba’s international e-commerce platforms. With plans to grow its workforce to 80 by year-end and a current client base of 300, Connectly is well-positioned to continue its impactful growth in the retail industry.
Adobe has announced the upcoming release of a generative AI-powered video creation tool named Adobe Firefly Video Model. Scheduled for a limited beta release later this year, this tool will extend Adobe’s Firefly suite, which currently includes applications for generating still images and designs. The new model will allow users to create a five-second video clip from a single text or image prompt, with options to specify camera angles, motion, and zoom.
The introduction of this tool marks Adobe’s entry into the competitive AI video generation market, which already features offerings from companies like OpenAI and Stability AI. Adobe aims to differentiate itself by focusing on quality and user-guided prompt understanding, addressing specific needs of videographers.
Adobe assures that the model is trained exclusively on public domain or licensed content from its Adobe Stock database, which includes 400 million curated images and videos, avoiding any intellectual property issues. Additionally, Adobe is launching Generative Extend, a feature for Premiere Pro that extends video clips by generating content to fill gaps.
OpenAI is reportedly in talks to secure $6.5 billion in funding, aiming for a $150 billion valuation. Such a move would significantly boost its position among the world’s top startups, following an earlier $86 billion valuation this year.
Led by CEO Sam Altman and backed by Microsoft, OpenAI’s success with the ChatGPT chatbot has driven its rapid rise. The firm has revived Silicon Valley’s interest in AI, further solidifying its position. A significant portion of the new funding may come in the form of a revolving credit facility, adding $5 billion in debt from banks.
The capital injection will help OpenAI remain a private company, avoiding the regulatory challenges and stock market volatility that often come with public listings. Many high-profile startups are choosing to stay private for longer, bolstered by private equity funding.
Some investors, however, may push for liquidity through a public offering or company sale. Meanwhile, OpenAI has been added to Forge Global’s prestigious list of “Private Magnificent Seven” startups, further highlighting its dominance in the AI sector.
Australia’s NEXTDC has announced a significant debt syndication of A$2.9 billion ($1.94 billion) to facilitate its expansion and acquisition of data centres throughout the Asia-Pacific region. This financial move aligns with the increasing global demand for greater data capacity, mainly due to the surge in AI applications.
The debt syndication follows NEXTDC’s recent capital-raising efforts, which included raising A$750 million through a share purchase plan and a placement. These new 5- and 7-year debt facilities are designed to offer better terms and optimal pricing as the company continues its ambitious growth strategy.
NEXTDC is currently developing nine data centre sites in key markets such as Malaysia, Japan, Thailand, and New Zealand, reflecting its commitment to expanding its infrastructure in response to the rapid growth of data consumption.
Apple’s iPhone 16 has struggled to generate excitement as its long-anticipated AI features remain in the testing phase. Meanwhile, Huawei is gaining momentum, unveiling a tri-fold smartphone that has attracted significant attention in the competitive global market.
After the release, Apple’s shares fell by 1.7%, reflecting concerns over the limited upgrades to the phone’s design and AI technology, which will only be available in beta next month. The lack of full AI integration has led to dissatisfaction in China, where users expressed frustration over missing features.
Huawei’s latest Mate XT smartphone, boasting advanced AI capabilities and priced at $2,800, has already secured over 4 million pre-orders. Analysts predict that, despite production constraints, the Mate XT’s innovative design could present a significant challenge to Apple.
As Huawei continues its resurgence following US sanctions, its dominance in China grows. In contrast, iPhone sales in China have dropped, and Apple now faces increased pressure from Huawei’s cutting-edge technologies in the high-end market.
OpenAI is set to launch its new AI model ‘Strawberry’ within the next two weeks as part of its ChatGPT service. The model is designed to focus on reasoning rather than instant responses, could offer a more thoughtful conversational experience.
Led by Sam Altman, OpenAI has generated strong interest and investment in AI technology. Businesses are increasingly turning to artificial intelligence to enhance their products, with OpenAI reporting over one million paying users across its services.
Jabil, a US-based electronics components manufacturer and supplier to Apple, will establish a new manufacturing facility in Tamil Nadu, India, with an investment of approximately 20 billion rupees ($238.2 million). The plant, located near the city of Trichy, will create around 5,000 jobs, according to Tamil Nadu’s Industries Minister T R B Rajaa, who announced the deal on social media following its signing in Chicago.
Matt Crowley, Jabil’s executive vice president, emphasised India‘s growing importance as a manufacturing hub, stating that the expansion would enable the company to better serve its customers. This new facility will complement Jabil’s existing operations in Pune, located in western India.
The government of Tamil Nadu has also signed an agreement with Rockwell Automation worth 6.66 billion rupees to expand manufacturing in the state. Another agreement, with Autodesk, has been signed, though its value has not been disclosed, according to Chief Minister M K Stalin.
Tamil Nadu is rapidly becoming a preferred destination for global manufacturing, with significant investments boosting the state’s role in India’s growing industrial sector.
FedEx has made a strategic investment in AI robotics and automation company Nimble to enhance its fulfilment services for small and medium-sized businesses. The investment aims to support FedEx’s Fulfilment unit, which assists businesses with order fulfilment and inventory management.
The investment comes as parcel delivery companies increasingly turn to automation to reduce costs and improve efficiency, particularly during periods of lower freight demand. FedEx believes Nimble’s automated third-party logistics solutions will help optimise supply chain operations across North America.
Scott Temple, president of FedEx Supply Chain, stated that the alliance with Nimble will expand the company’s presence in e-commerce, allowing FedEx to scale its fulfilment offerings throughout North America. The exact size of the investment has not been disclosed.
Nimble’s AI robotics technology is expected to help FedEx improve the efficiency of its fulfilment operations and further strengthen its position in the e-commerce sector.
OpenAI announced on Thursday that it now has over 1 million paying users across its ChatGPT business products, including Enterprise, Team, and Edu. The increase from 600,000 users in April highlights CEO Sam Altman’s success in driving enterprise adoption of the AI tool.
Recent reports suggest OpenAI executives are discussing premium subscriptions for upcoming large-language models, such as the reasoning-focused Strawberry and a new flagship model called Orion. Subscription prices could reach as high as $2,000 per month for these advanced AI tools.
ChatGPT Plus currently costs $20 per month, while the free tier continues to be used by hundreds of millions every month. OpenAI is also working on Strawberry to enable its AI models to perform deep research, refining them after their initial training.
The discussion around premium pricing follows news that Apple and Nvidia are in talks to invest in OpenAI, with the AI company expected to be valued at over $100 billion. ChatGPT currently has more than 200 million weekly active users, doubling its user base since last autumn.
