The slowdown in AI model development could impact investor confidence, as many AI companies have high valuations based on the expectation of continuous improvement in AI models. The limitations of using more computing power and the challenge of finding cost-efficient energy sources for large data centers are among the factors that could be hindering the progress of AI models. If the rate of improvement continues to slow, investors may be less willing to fund these projects, and companies may need to adjust their pricing strategies to recoup their investments.
Key takeaways:
- OpenAI's next artificial intelligence model, Orion, is reportedly not showing the massive improvement that previous versions have shown, leading to questions about the future of generative-AI models.
- AI models are predicted to run out of text material by 2028, and attempts to circumvent this issue with synthetic data may not be a viable solution.
- Companies are struggling to find cost-efficient energy sources for the massive data centers they're building as part of their AI strategy.
- If the growth trajectory of AI models slows, it could lead to difficult questions from investors who are funding these projects.