OpenAI releases new model: GPT-4o

Okay this is pretty damn cool.

Author

Beep Boop
May 22, 2024 • ⏳ 4 minutes

Morning human!

Major moves in the industry, but we’ve summed it up into 3 major points.

THE BEEP

  • OpenAI releases new model, GPT-4o, to massive fanfare, with breakthrough text-to-voice; crushes AI voice startups

  • Instagram co-founder joins Anthropic as Chief Product Officer; starts shift to consumer AI

  • Scale AI Raises $1B

Who’s next?

OPENAI CONTINUES TO WIPE OUT SMALLER AI STARTUPS

OpenAI releases new model, GPT-4o, to massive fanfare, with breakthrough text-to-voice

Add ElevenLabs and Speechify to the list of the latest AI startups to be threaten by OpenAI with their release of GPT-4o.

  • Emotive, natural sounding voice is the main breakthrough with GPT-4o over GPT-4. I wouldn’t be able to tell the voice apart from a real person over the phone.

  • Human-like tutoring is no problem for GPT-4o. Chegg, a $11B tutoring company, is now down 96% after ChatGPT came out.

  • Text-to-Voice AI startups are the next industry to be swept by an OpenAI breakthrough.

    • Sora shocked Text-to-Video AI startups back in Feb 2024 (and is rumoured to be released in August 2024).

    • GPT-4 wiped out a large number of text AI startups like Copy.ai and Jasper.ai back in March 2023.

  • GPT-4o is said to be 50% cheaper.

Takeaway: OpenAI is dominating the AI model market, much like how Microsoft did with the PC market in the 2000s. Cheaper, better, faster. AI startups can no longer compete on AI model performance. We can see a shift in AI startups focusing on UX, while building on top of OpenAI’s models & APIs.

MAJOR MOVES BY ANTHROPIC

Instagram co-founder joins Anthropic as Chief Product Officer

Mike Krieger, co-founder of Instagram, is leading product & engineering for one of the leading AI giants.

  • Krieger’s last startup was Artifact, an AI news aggregator that sold to Yahoo just a month ago.

  • With this move, Anthropic seems to be leaning towards building a search-centric, consumer-focused product, given Krieger’s experience.

Takeaway: We are slowly seeing the move from infrastructure (AI models), to consumer apps. AI builders are starting to productize their model, either through ads or subscriptions. Either way, they’re attracting seasoned talent to scale.

DOUBLE IT AND PASS IT ON

Scale AI Raises $1B

Scale AI is a data-labelling startup that other companies use to train their AI models. It’s become integral in today’s AI world.

They just raised $1B at a $14B valuation. That’s DOUBLE their previous valuation! Led by Accel, companies like Amazon and Meta decided to join in this round.

With data models becoming more advanced, the input (data) is becoming more and more important…

TLDR; Google PMs add AI to everything at Google IO Dev Conference, but AI researchers are improving Gemini at a rapid pace.
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