OpenAI nearly doubles valuation to $157 billion

+ AI can only do 5% of jobs, says MIT economist...

October 03, 2024

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Latest headlines 👇

OpenAI, the company behind ChatGPT, has raised $6.6 billion in a new funding round, pushing its valuation to $157 billion. Backers include Microsoft, SoftBank, and Thrive Capital, which led the round with a $1.25 billion investment. This nearly doubles OpenAI’s value from earlier this year. Investors are banking on the company’s future profitability, contingent on its conversion to a for-profit structure. With 250 million weekly active users and 11 million paying subscribers, OpenAI remains a leader in the competitive AI space. Read more

Microsoft is revamping its AI efforts with new features for its Copilot+ PCs, including the "Click to Do" option, which enables users to perform AI-assisted tasks like background blurring or rewriting text based on what's on their screen. After privacy concerns delayed its Recall feature, Microsoft is now offering enhanced privacy controls, including biometric authentication. Expanding its AI capabilities, Microsoft is integrating Intel and AMD chips into Copilot+ PCs and introducing advanced reasoning through OpenAI’s o1 model to tackle complex tasks. Read more

MIT economist Daron Acemoglu is sounding the alarm on the AI investment frenzy, warning that AI may only automate 5% of jobs in the next decade, far less than what companies are betting on. While AI shows promise in certain fields, Acemoglu says it's unlikely to drive the productivity boom many are expecting. His concern? Billions are being poured into AI with little understanding of its limitations, leading to a potential tech stock crash or economic fallout if expectations aren’t met. Read more

After a $2.7 billion deal with Google, Character.ai is pivoting from building its own large language models to improving its popular AI-powered chatbots that simulate conversations with characters and celebrities. Facing tough competition from tech giants like Microsoft, Amazon, and Google, the startup’s new CEO Dominic Perella says that developing cutting-edge models has become “insanely expensive.” Character.ai will now concentrate on enhancing its consumer products, which have gained traction with a young user base. Read more

OpenAI is betting that AI-powered assistants will become a staple of everyday life by 2025, as tech giants like Google and Apple race to refine the technology. AI agents, which can reason and handle complex tasks, represent the next big step in AI development. OpenAI’s recent advances, including its o1 model with improved reasoning and voice capabilities, are part of its strategy to lead this revolution. The company believes these advances will drive profitability as it transitions to a for-profit model. Read more

Poolside, an AI startup focused on building models that can create software code, has secured $500 million in a Series B round led by Bain Capital Ventures. The funding comes as Poolside prepares to release its first product, an AI-powered intelligent code assistant for developers. The round included investments from DST Global, Nvidia, HSBC Ventures, and others, bringing Poolside's valuation to an estimated $3 billion. The company plans to use the funds to expand its AI capabilities and accelerate commercialization. Read more