OpenAI announces GPT-4, claims it can beat 90% of humans on the SAT
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ChatGPT-4 is “larger” than previous versions, which means it has been trained on more data and has more weights in its model file, making it more expensive to run as well.
Currently, many researchers in the field believe many of the recent advancements in AI come from running ever-larger models on thousands of supercomputers in training processes that can cost tens of millions of dollars. GPT-4 is an example of an approach centering around “scaling up” to achieve better results.
OpenAI said it used Microsoft Azure to train the model; Microsoft has invested billions in the startup. OpenAI did not publish details about the specific model size or the hardware it used to train it, which could be used to recreate the model, citing “the competitive landscape.”
OpenAI’s GPT large language model powers many of the artificial intelligence demos that have been wowing people in the technology industry in the past six months, including Bing’s AI chat and ChatGPT, and the latest version is a preview of new advancements that could start filtering down to consumer products like chatbots in the coming weeks. Bing’s AI chatbot uses GPT-4, Microsoft said on Tuesday.
OpenAI says the new model will produce fewer factually incorrect answers, go off the rails and chat about forbidden topics less often, and even perform better than humans on many standardized tests.
GPT-4 performed at the 90th percentile on a simulated bar exam, the 93rd percentile on an SAT reading exam, and the 89th percentile on the SAT Math exam, OpenAI claimed.
However, OpenAI warns that the new software isn’t perfect yet and that it is less capable than humans in many scenarios. It still has a major problem with “hallucination,” or making stuff up, and isn’t factually reliable, the company said. It is still prone to insisting it is correct when it is wrong.
“GPT-4 still has many known limitations that we are working to address, such as social biases, hallucinations, and adversarial prompts,” the company said in a blog post.
“In a casual conversation, the distinction between GPT-3.5 and GPT-4 can be subtle. The difference comes out when the complexity of the task reaches a sufficient threshold—GPT-4 is more reliable, creative, and able to handle much more nuanced instructions than GPT-3.5,” OpenAI wrote in a blog post.
The new model will be available to paid ChatGPT subscribers and will also be available as part of an API which allows programmers to integrate the AI into their apps. OpenAI will charge about 3 cents for about 750 words of prompts and 6 cents for about 750 words in response.
‘Inundated with requests’: Digital currency firms look to Swiss banks after crypto-friendly lenders fail
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Some of these companies have turned to crypto-friendly Swiss banks, flooding them with requests for banking services, according to multiple industry insiders who spoke to CNBC.
Typically, the crypto industry has found it difficult to access banking services from traditional lenders, who don’t want to touch anything that does not have a clear regulatory framework. This has included blockchain and crypto firms, who have instead had to turn to specialist banks.
But with two of the biggest lenders, along with SVB, now out of the picture, cryptocurrency firms have turned to Switzerland, which has sought to market itself as a crypto hub with solid regulation.
“We have been inundated with requests,” said an advisor at a private Swiss bank, who preferred to remain anonymous due to the sensitive nature of the matter.
The advisor said on the Monday after Silvergate and Signature Bank’s winddown this month, the private lender had more requests in a single day than ever before.
“It is just nuts,” the advisor said.
U.S., non-Europe firms look to Switzerland
Dominic Castley, chief marketing officer at Sygnum, one of Switzerland’s biggest banks that is focused on servicing digital asset companies, said it is seeing an influx of enquiries.
“Over the past weeks as the current banking industry events have unfolded, we have seen a significant increase in onboarding enquiries from various international locations,” Castley said, adding that Sygnum’s location in both Switzerland and Singapore is attractive to companies.
Sygnum has a Swiss banking license and a capital markets services license in Singapore, bringing it under the purview of regulators.
One Switzerland-based advisor to financial technology companies, who also preferred to remain anonymous due to the sensitivity of the situation, said that has been “a lot more inflow from U.S. customers” to Swiss banks.
An executive at a European trading firm, meanwhile, said their company had been seeing “non-Europe based entities” making enquiries for new banking relationships. The executive, who wished to remain anonymous due to the sensitive nature of the topic, said these firms include crypto-focused hedge funds and venture capital firms.
Castley said interest is “mainly coming from investors, asset managers and blockchain projects looking to diversify their crypto investments with a trusted Swiss partner like Sygnum Bank.”
Switzerland’s other major lender that deals with the digital assets industry — SEBA Bank — did not respond to a request for comment when contacted by CNBC.
Switzerland’s crypto-friendly stance
Part of why companies are seeking out Swiss banks is the country’s regulation which is welcoming to cryptocurrency firms in need of a stable operating environment.
The country has created what locals dub “Crypto Valley” in the region of Zug, just outside the Swiss capital Zurich, where start-ups and more established digital currency firms have set up shop.
In 2021, the government introduced a regulation on companies using so-called “distributed electronic register technology” or blockchain, which originated with the cryptocurrency bitcoin but has since evolved.
Thierry Arys Ruiz, CEO of Swiss-based blockchain firm AgAu.io, said Switzerland is “more stable” and there is “more certainty to what the rules are.”
The anonymous advisor at the private Swiss bank said that companies are coming to Switzerland to be in a “safer jurisdiction” for crypto regulation.
TikTok CEO appeals to U.S. users ahead of House testimony
Filming from Washington, D.C., Chew emphasized the large scale of TikTok users, small and medium-sized businesses and its own employees based in the U.S. that rely on the company. The message may preview his appeal to lawmakers Thursday, where he will be faced with questions about the ability of its Chinese parent company ByteDance, and the Chinese government, to access U.S. user information collected by the app.
TikTok says it has worked to create a risk mitigation plan to ensure that U.S. data doesn’t get into the hands of a foreign adversary through its app. The company has said U.S. user data is already stored outside of China.
But many lawmakers and intelligence officials seem to remain unconvinced that the information can be safe while TikTok is owned by a Chinese company. TikTok said last week that the Committee on Foreign Investment in the U.S., which is reviewing risks related to the app, is pushing for ByteDance to sell its stake or face a ban.
Chew disclosed in the video that TikTok has more than 150 million monthly active users, or MAUs, in the U.S., representing massive growth from August 2020, when it said for the first time that it has about 100 million MAUs in the country. That number includes 5 million businesses that use the app to reach their customers, with most of those being small or medium-sized businesses. He also said TikTok has 7,000 U.S.-based employees.
“This comes at a pivotal moment for us,” Chew said, referencing lawmakers’ threats of a TikTok ban. “This could take TikTok away from all 150 million of you.”
Chew then appealed to users directly to share in the comments what they want their representatives to know about why they love TikTok.
Bill Gates says OpenAI’s GPT is the most important advance in technology since 1980
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Before that, people used their computers through a command line. Gates took the “GUI” technology and based Windows around it, creating a modern-day software juggernaut.
Now, Gates sees parallels with OpenAI’s GPT models, which can write text that resembles human output and generate nearly usable computer code.
He wrote in a blog post on Tuesday that he challenged the OpenAI team last year to develop an artificial intelligence model that could pass the Advanced Placement Biology exam. GPT-4, released to the public last week, scored the maximum score, according to OpenAI.
“The whole experience was stunning,” Gates wrote. “I knew I had just seen the most important advance in technology since the graphical user interface.”
“The development of AI is as fundamental as the creation of the microprocessor, the personal computer, the Internet, and the mobile phone. It will change the way people work, learn, travel, get health care, and communicate with each other. Entire industries will reorient around it. Businesses will distinguish themselves by how well they use it,” he continued.
Gates is the latest big name technologist to take a position on recent advancements in AI as a major shift in the technology industry. He joins former Google CEO Eric Schmidt and former Amazon CEO Jeff Bezos who have predicted that data-based machine learning could change entire industries.
Current CEOs also see major business opportunities in AI applications and tools. Nvidia CEO Jensen Huang said on Tuesday that the field is experiencing an “iPhone moment,” referring to the time when a new technology becomes widely adopted and entrepreneurs see opportunities for new businesses and products.
Gates and Microsoft have close ties to OpenAI, which developed the GPT model. Microsoft invested $10 billion in the startup and sells some of its AI software through Azure cloud services.
Gates suggests that people talking about AI should “balance fears” of biased, wrong or unfriendly tools with its potential to improve lives. He also believes governments and philanthropies should back AI tools to improve education and health in the developing world, because companies won’t necessarily choose to make those investments themselves.
The entire post from Gates is worth a read over at his blog.
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