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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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Jensen Huang: We have achieved AGI now... sort of

Lots of AI leaders are thinking about a big moment looming over the current AI boom: when will we have achieved artificial general intelligence?

There’s no shortage of predictions, but we haven’t yet seen a full-throated declaration that this slippery milestone has been achieved.

Until now. On Lex Friedman’s podcast Monday, Nvidia CEO Jensen Huang was asked what he thought the timeline looked like for “an AI system that’s able to essentially do your job. So, run — no, start, grow, and run a successful technology company.”

Huang confidently answered: “I think it’s now. I think we’ve achieved AGI.”

Huang then hedged, noting that Friedman was talking about running a $1 billion dollar company, but he didn’t specify for how long. Huang elaborated, “It is not out of the question that a Claude was able to create a web service, some interesting little app that all of a sudden, you know, a few billion people used for $0.50, and then it went out of business again shortly after.”

So maybe it will be a while before Jensen Huang can get help running Nvidia by eating his own dog food.

Huang confidently answered: “I think it’s now. I think we’ve achieved AGI.”

Huang then hedged, noting that Friedman was talking about running a $1 billion dollar company, but he didn’t specify for how long. Huang elaborated, “It is not out of the question that a Claude was able to create a web service, some interesting little app that all of a sudden, you know, a few billion people used for $0.50, and then it went out of business again shortly after.”

So maybe it will be a while before Jensen Huang can get help running Nvidia by eating his own dog food.

17.5%

OpenAI is trying to woo private equity investors with a sweet offer: a guaranteed minimum return of 17.5% on their investments, which is “significantly higher than typical preferred instruments, as well as early access to new models, according to a report from Reuters.

The deal aims to build joint ventures to raise capital amid OpenAI’s intense competition for a bigger slice of the enterprise AI market. The minimum return offer is something that its competitor Anthropic is not currently offering, per Reuters.

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Alphabet’s drone delivery startup, Wing, expands service to the Bay Area

Move over Waymo — another one of Alphabet’s “Other Bets” is expanding. Drone delivery company Wing said Monday it’s bringing its “ultra-fast residential drone delivery service” to the Bay Area, where autonomous ride-hailing service Waymo also has a sizable presence.

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