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Fri. 12/27 – A New “Definition” Of AGI

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Key takeaways

  • Microsoft and OpenAI are negotiating new terms regarding their partnership and the implications of converting OpenAI into a for-profit entity.
  • AGI has now been defined in financial terms, raising ethical questions about the commercialization of advanced AI technology.
  • DeepSeek V3 represents a significant milestone in open-source AI development, highlighting the potential for cost-effective alternatives to existing models.
  • The weekend longreads provide critical reflections on current trends and challenges across various industries, particularly in technology and digital culture.

Summary

Trouble for Microsoft and OpenAI: The Dynamics of a For-Profit Model

In today's episode, the complexities between Microsoft and OpenAI regarding their future for-profit structure are highlighted. Both companies are engaged in intense negotiations, particularly about revenue sharing and the right to use OpenAI's intellectual property. They aim to redefine their partnership and address OpenAI's rapid growth and financial projections—$4 billion in revenue this year and a staggering $100 billion by 2029. This growth brings tension over the existing terms of their collaboration, which seems increasingly favorable for Microsoft. Additionally, a looming deadline may compel OpenAI to expedite its restructuring.

AGI Redefined: Profit as a Metric

A significant revelation is the new definition of Artificial General Intelligence (AGI) posited by Microsoft and OpenAI, where AGI is now defined by the capability to generate profits exceeding $100 billion. This commercial metric diverges from traditional perspectives on AGI as a milestone of monumental technological maturity. Concerns arise about the implications of placing a monetary threshold on AGI, especially given OpenAI's current operation loss and the long path to profitability projected until 2029.

DeepSeek V3: A Game-Changing AI Model

DeepSeek, a Chinese AI company, has launched DeepSeek V3, claiming it surpasses existing models, including GPT-40, while being open-source. Impressively, it completed training with a fraction of the cost—around $5.57 million—compared to over $500 million for models like Lama 3.1. This breakthrough suggests that open source AI could be on par with proprietary systems, potentially reshaping the competitive landscape of AI development.

Weekend Longreads Suggestions

Wrapping up the podcast, the host offers intriguing weekend longread suggestions, diving into themes of the evolving video game industry’s economics, the transient nature of viral internet memes, and advancements in passport technology—illustrating societal shifts in digital interactions. Each piece reflects critical insights that resonate with ongoing advancements in technology and culture.

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Show notes

Microsoft and OpenAI are reportedly having problems deciding how make this whole, reclassifying as for-profit thing work. Oh, also, they secretly decided on a new definition of artificial general intelligence that is tied to tangible dollar value. At the tail end of the year, the most interesting new AI model of the year. And, of course, the Weekend Longreads Suggestions.
Links:

Microsoft and OpenAI Wrangle Over Terms of Their Blockbuster Partnership (The Information)

Microsoft and OpenAI’s Secret AGI Definition (The Information)

DeepSeek-V3, ultra-large open-source AI, outperforms Llama and Qwen on launch (VentureBeat)

Weekend Longreads Suggestions:

Video Games Can’t Afford to Look This Good (NYTimes)

Hawk Tuah Wasn’t What It Seemed (The Atlantic)

The Paper Passport Is Dying (Wired)

You Need to Create a Secret Password With Your Family (Wired)

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