Tech
tech
Jon Keegan

WSJ: OpenAI is hitting a wall with GPT-5 training

After 18 months’ work and hundreds of millions of dollars’ worth of computing time training its next major foundational model, GPT-5, OpenAI seems to have hit a wall.

New reporting from The Wall Street Journal said that the company is not seeing the exponential leap in its next-gen model (known internally as “Orion”) that OpenAI researchers — and OpenAI investors — had expected.

The AI “scaling law” that has until now consistently delivered more powerful, more capable AI models by just feeding more into more expensive GPUs is showing signs of reaching a plateau. Researchers are scrambling to find reserves of fresh data to train the models, as most of the internet has already been harvested.

Much of the AI industry has followed this pattern of model development, so if the current approach is reaching its theoretical limits, it could shake up the power structure of the industry.

Companies like Meta, Amazon, xAI, Google, and others are spending billions of dollars on data centers powered by hundreds of thousands of specialized training GPUs, like Nvidia’s popular Hopper series. Investors have been promised continued leaps in AI technology in exchange for huge capital expenditures investing in computing infrastructure.

OpenAI just announced its new o3 “reasoning” models, which the company is hoping will help break through the current barriers.

The AI “scaling law” that has until now consistently delivered more powerful, more capable AI models by just feeding more into more expensive GPUs is showing signs of reaching a plateau. Researchers are scrambling to find reserves of fresh data to train the models, as most of the internet has already been harvested.

Much of the AI industry has followed this pattern of model development, so if the current approach is reaching its theoretical limits, it could shake up the power structure of the industry.

Companies like Meta, Amazon, xAI, Google, and others are spending billions of dollars on data centers powered by hundreds of thousands of specialized training GPUs, like Nvidia’s popular Hopper series. Investors have been promised continued leaps in AI technology in exchange for huge capital expenditures investing in computing infrastructure.

OpenAI just announced its new o3 “reasoning” models, which the company is hoping will help break through the current barriers.

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Tesla CEO Elon Musk wins appeal for his 2018 pay package

Tesla CEO Elon Musk has won an appeal to the Delaware Supreme Court, restoring his 2018 pay package that was worth $56 billion at the time but has since ballooned in value, Reuters reports.

Two years ago, a lower court had struck down the compensation deal, calling it “unfathomable,” and Musk has been fighting for it since then.

Of course, Musk was recently awarded an even bigger pay package that could potentially award him $1 trillion over time. Tesla shares were recently up 0.5% in after-hours trading.

Of course, Musk was recently awarded an even bigger pay package that could potentially award him $1 trillion over time. Tesla shares were recently up 0.5% in after-hours trading.

tech
Jon Keegan

OpenAI’s reported fundraising valuation keeps jumping by hundreds of billions of dollars

OpenAI is reportedly in talks to raise as much as $100 billion, with a valuation of....$500 billion...$750 billion $830 billion?

This is getting ridiculous. This week we have read multiple reports that OpenAI is in early discussions with potential investors about a significant fundraising round of up to $100 billion, to help cover its cloud computing costs.

  • On Tuesday, The Information reported a major $10 billion investment from Amazon in OpenAI, with a valuation higher than $500 billion

  • On Wednesday, The Information reported that the $100 billion round would give OpenAI a valuation of $750 billion

  • Today, the Wall Street Journal is reporting that the $100 billion round would give OpenAI a valuation of as much as $830 billion

The spread from $500 billion to $830 billion is pretty wild, and we are wondering what it might be by next week.

  • On Tuesday, The Information reported a major $10 billion investment from Amazon in OpenAI, with a valuation higher than $500 billion

  • On Wednesday, The Information reported that the $100 billion round would give OpenAI a valuation of $750 billion

  • Today, the Wall Street Journal is reporting that the $100 billion round would give OpenAI a valuation of as much as $830 billion

The spread from $500 billion to $830 billion is pretty wild, and we are wondering what it might be by next week.

tech
Jon Keegan

Report: OpenAI in early talks for new fundraising round with $750 billion valuation

Just yesterday, we were reading about how Amazon was in talks to invest as much as $10 billion in OpenAI, with an eye-popping valuation of more than $500 billion. But those numbers might already be old.

A new report by The Information says that OpenAI is in early talks to raise as much as $100 billion, with a $750 billion valuation.

The company is reportedly estimating its fast-growing revenue will hit $100 billion by 2028, but it also expects to burn $115 billion in cash through 2029.

The company is reportedly estimating its fast-growing revenue will hit $100 billion by 2028, but it also expects to burn $115 billion in cash through 2029.

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