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(Bronson Stamp for Sherwood Media)

OpenAI is Pixar

The “wow factor” of each company impressed the masses, but scared creatives.

A breakthrough technology captures the public’s imagination; the disruption threatens multiple creative industries; a feverish race to achieve a futuristic goal once unimaginable begins. 

You could say any of these apply to OpenAI, but decades ago, this was how people were talking about computer-graphics pioneer Pixar.

Breakthrough

When Apple founder Steve Jobs purchased Pixar from George Lucas in 1986, the fledgling animation studio was pushing the boundaries of computer-generated imagery.

While crude by today’s standards, nobody had seen anything like their animated short films “Luxo Jr.” or 1989’s “Tin Toy,” which won the Academy Award for Best Animated Short Film. (Pixar would go on to win 22 more Academy Awards, and two nominations for Best Picture.) 

“Tin Toy” was not just a technical marvel at the time, but showed that these cold, digital pixels could be capable of heartwarming, emotional storytelling. Pixar’s breakthroughs inspired a generation of programmers, digital artists, and creators to build the modern computer-graphics industry — which, incidentally, would also lead to the computing and hardware innovations that made OpenAI possible. In 2006, animation powerhouse Disney purchased Pixar for $7.4 billion.

ChatGPT took the tech world by storm from launch day in November 2022. After decades of progress in foundational AI breakthroughs like convolutional neural networks and transformers, the public finally got a chance to see what these advances could mean for regular people. Reading news coverage of ChatGPT’s initial release from just two years ago feels like stepping into a time machine to a simpler time, like in this breathless New York Times piece:

“Hundreds of screenshots of ChatGPT conversations went viral on Twitter, and many of its early fans speak of it in astonished, grandiose terms, as if it were some mix of software and sorcery.” 

Disruption

The “wow factor” of what Pixar was creating at the time impressed artists, technologists, and filmmakers, but it also signaled a disruption. Was the era of hand-drawn animation nearing its end? 

In the 1998 book “Computer Animation: A Whole New World,” Pixar cofounder Ed Catmull told author Rita Street:

“Luxo Jr. sent shock waves through the entire industry — to all corners of computer and traditional animation. You see, at that time, most traditional artists were afraid of the computer. They did not realize that the computer was merely a different tool in the artist’s kit but instead perceived it as a type of automation that might endanger their jobs."

A similar thing happened when OpenAI’s ChatGPT and DALL-E text-to-image generator popped up in front of creative writers, artists, and journalists, but with an added wrinkle. This time, not only was this startling technology putting their livelihoods at risk, but it was trained on their own copyrighted public works. Rather than shrug it off and accept this as the inevitable future, many creators have filed lawsuits and designed clever adversarial countermeasures.

Holy Grails

Now OpenAI plans to continually and rapidly improve its technology, racing to achieve a lofty goal, as Pixar did. 

The engineers and animators at Pixar saw the limitations of their technology at the time, but had their eyes fixed on the future of computer graphics. They wanted to make everything look real. 

“We people in computer graphics have known in our bones for 20 years that we would do this,” Pixar cofounder Alvy Ray Smith said in a 1989 New York Times story about the rise of computer animation and the advances that led to “Tin Toy.” 

“Our goal is not to have people say, ‘That’s computer animation,’” he said. “Our goal is photorealism.” 

OpenAI’s stated mission is to achieve “artificial general intelligence,” (AGI) — loosely defined as advanced AI systems that not just equal but surpass humans in all tasks, which has long been considered the Holy Grail of machine learning. 

OpenAI’s mission page states:

“If AGI is successfully created, this technology could help us elevate humanity by increasing abundance, turbocharging the global economy, and aiding in the discovery of new scientific knowledge that changes the limits of possibility.”

It’s clear that OpenAI’s leadership knows there’s a long road ahead to AGI, and they appear to be unimpressed with what their technology can do today. Earlier this year, OpenAI CEO and cofounder Sam Altman said

“ChatGPT is mildly embarrassing at best. GPT-4 is the dumbest model any of you will ever have to use again, by a lot.”

Pixar spent decades pushing the boundaries of computer-graphics technology, which is now so common that consumers don’t really think much about it. OpenAI has been on its quest for AGI for nine years, though recently the pace of its breakthroughs is quickening. But one question hangs over OpenAI: is AGI even possible? 


Read the other arguments for OpenAI's future here.

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Amazon plans to axe thousands of corporate workers next week, after laying off 14,000 back in October, according to Reuters. The new cuts could be “roughly the same” number as last time and may hit Amazon Web Services, retail, Prime Video, and human resources, the report said, citing people familiar with the matter.

The company plans to cut a total of 30,000 corporate positions as part of an effort to “streamline operations and reset its culture,” Business Insider reported separately, noting comments from CEO Andy Jassy, who said the earlier layoffs were “about culture” rather than AI-related cost cutting.

The company plans to cut a total of 30,000 corporate positions as part of an effort to “streamline operations and reset its culture,” Business Insider reported separately, noting comments from CEO Andy Jassy, who said the earlier layoffs were “about culture” rather than AI-related cost cutting.

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There are now more than 1 million “.ai” websites, contributing an estimated $70 million to Anguilla’s government revenue last year

Data from Domain Name Stat reveals that the top-level domain originally assigned to the British Overseas Territory of Anguilla passed the milestone in early January.

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TikTok has finally sealed its deal to establish a majority American-owned joint venture to manage its US operations.

On Friday, the social media company announced that its US arm will now be led by three “managing investors” — Silver Lake, Oracle, and MGX, each with a 15% holding — while ByteDance retains 19.9% of the business, and a swath of other investors, including Michael Dell’s family office, round out the cap table.

The joint venture will be operated by a seven-person majority American board of directors, which includes TikTok CEO Shou Chew, with Adam Presser, previously TikTok’s head of operations, trust, and safety, as its CEO.

Though the valuation of the new venture has not been shared, Vice President JD Vance has previously cited the market value of TikTok’s US operations at about $14 billion, just topping Snap and lower than Pinterest.

The deal closes the platform’s battle, which kicked off in earnest in August 2020 when President Donald Trump first tried to ban TikTok over national security concerns. The announcement notes that the new TikTok USDS Joint Venture LLC will “secure U.S. user data, apps and the algorithm.” Trump celebrated the deal, which has been signed off by both the US and Chinese governments, per Reuters, in a Truth Social post, saying TikTok “will now be owned by a group of Great American Patriots and Investors, the Biggest in the World.”

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Elon Musk says Tesla Robotaxis are operating without drivers, sending stock higher

Tesla CEO Elon Musk said that Tesla’s Robotaxis are now operating in Austin without a safety monitor. Tesla has been testing driverless cars in the area for about a month, and Musk had previously said the company would remove safety drivers by the end of 2025.

It’s unclear how many exactly of the roughly 50 Robotaxis the company operates in the area don’t have drivers. Tesla is “starting with a few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors, and the ratio will increase over time,” Ashok Elluswamy, Tesla’s head of AI, posted shortly after Musk. Ethan McKenna, the person behind Robotaxi Tracker, estimates it’s two or three vehicles.

What is clear is that the move is good for Tesla’s stock, which is currently up 3.5%, extending its gains after Musk’s tweet. Morgan Stanley said yesterday that it considers the removal of safety drivers a “precursor to personal unsupervised FSD rollout.” Unsupervised Full Self-Driving is widely considered to be integral to the would-be autonomous company’s value proposition.

At the World Economic Forum earlier on Thursday, Musk said, “Self-driving cars is essentially a solved problem at this point.”

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