Dibyendu Haldar’s Post

Reality is catching up to big tech and their enthusiasm for AI, with rapidly growing costs, revenues struggling to keep pace and accelerating energy demands and emissions imploding sustainability goals. Recent reporting from the New York Times estimates that OpenAI will lose $5B in 2024, and is seeking additional investment of $7B in the latest round. With a substantial portion of its $13B in Microsoft funding going back to Microsoft to pay for cloud computing services, and its revenue, while growing rapidly, is still dwarfed by the cost of training and delivering ChatGPT services. https://lnkd.in/eamR_rpM At the same time its energy consumption and carbon footprint are exploding with energy estimates for training GPT-4 between 51M - 62M kWH and estimated emissions between 12,456 and 14,994 metric tons of CO2. Moreover, the cost of running GPT-4 is as high as 50x GPT-3. https://lnkd.in/eeCdghZk While I am true believer in the benefits AI can bring to our economies, our companies, our world and ourselves, how we get there matters. It's time to take a hard look at both the profitability and sustainability (safety, too) of our AI deployments and invest the effort into improving our approach. Bigger is not always better. Let's start talking more about efficiency.

OpenAI's recent $6.6 billion funding round, boosting its valuation to a staggering $157 billion, isn’t just another financial milestone—it’s a watershed moment for generative AI. With heavyweights like Microsoft and Nvidia backing this push, OpenAI is poised to accelerate its innovation engine, particularly through its flagship product, ChatGPT, now utilized by 250 million weekly users. However, this growth comes with challenges. A projected $5 billion loss in 2024 due to R&D costs highlights the high stakes involved in AI development. As we look ahead, OpenAI must not only sustain its momentum but also navigate leadership changes that could impact its strategic direction. What are your thoughts on the implications of this funding? Will it spur an AI investment boom, or are the risks too great? #AI #OpenAI #Investment

Inflection AI CEO departs company to become CEO of Microsoft’s new AI division👇 Another day, another coup for Microsoft. After forming an alliance with OpenAI last year, Microsoft has now appointed Inflection AI CEO and DeepMind cofounder Mustafa Suleyman as the CEO of its consumer AI business. But the deal has raised some eyebrows. Inflection has raised over $1.5Bn in funding and Suleyman is reportedly taking most of the company’s team with him to Microsoft. In a blog posted yesterday, Inflection AI announced that the company will move away from its consumer business to focus on enterprise customers. Reading between the lines: The move is another chapter in the high-stakes race to secure the best talent in AI. It also highlights Microsoft's efforts to diversify its bets in the space and potentially avoid putting all of its eggs in one basket with OpenAI, despite investing billions in the ChatGPT maker. The nature of the deal also highlights the growing complexity of M&A in the space. In a post on X, venture capitalist Sheel Mohnot observed: “Microsoft is making the Inflection shareholders whole via a licensing deal… and they still keep their shares in Inflection, which is an ongoing concern.“ Suleyman says he will be leading all consumer AI products and research at Microsoft, including Copilot, Bing and Edge. Join the SBR2TH Tech Talent Weekly newsletter: https://lnkd.in/e3Tv72GK Find out more: www.SBR2TH.com Join the SBR2TH Tech Talent Weekly newsletter: https://lnkd.in/e3Tv72GK Click here to book a recruitment consultation for your business: https://lnkd.in/g5hVNd7F #future #economy #experience #work #tech #talent #recruiters #recruitment #talenthunter #developmentrecruitment #developerjobs #aijobs #mljobs #talentfocus #techrecruitment  #techrecruiter #techtalent #sourcing #hiring #energy  #energymarkets  #tech  #ai  #ml  #nuclearindustry  #nuclearenergy  #coalindustry  #naturalgasindustry  #solarpower #techadvancements #techcollaboration #techcompany #techcommunity #technews #news #sourcing #hiring

OpenAI allows employees to sell shares to SoftBank Group Corp. for $1.5 billion in a tender offer #OpenAI, the groundbreaking #AI company behind ChatGPT, has secured a new $1.5 billion investment from #SoftBank through a tender offer, allowing current and former employees to sell their shares. The company has raised over $13 billion in funding, including a recent $6.6 billion round led by Thrive Capital with participation from NVIDIA, Microsoft, and others, bringing its valuation to $157 billion. Founded by Sam Altman and Greg Brockman, OpenAI has redefined the generative AI market with its innovative models and technologies. SoftBank’s investment, led by its Vision Fund 2 and driven by CEO Masayoshi Son’s keen focus on AI, strengthens its portfolio of transformative tech companies. Son’s longstanding interest in artificial intelligence aligns with OpenAI’s ambition to push the boundaries of innovation in the sector. The funds will provide liquidity to employees through a #secondary sale, reflecting a broader trend among high-growth private companies navigating a slow IPO market. This approach ensures employee retention and satisfaction while enabling OpenAI to remain private as it continues to expand its offerings. The company recently introduced a search feature within ChatGPT, positioning itself to compete with tech giants like Google and Microsoft. The article on CNBC in the first comment.

While companies like OpenAI and Anthropic are making waves, it looks like big tech giants—Microsoft, Apple, Meta, Amazon, and NVIDIA—are still leading the charge with major investments. 💼💰 What do you think is the best way to invest in AI? Is it by putting your money in big tech? Share your thoughts! #AIInvesting #BigTech #InvestBamboo

🚀 Are We in an AI Bubble? Is the Pope a Catholic? A Critical Analysis💡 The recent surge in AI investments, particularly following the release of ChatGPT, has sparked debates about whether we're in the midst of an AI bubble. A recent article draws compelling parallels between the AI boom and historical investment bubbles, outlining five stages: displacement, boom, euphoria, profit-taking, and panic. 🔍 Key Insights: 1. **Displacement**: ChatGPT's launch on November 30, 2022, was a game-changer, akin to the early days of the internet with Mosaic and Netscape. It opened the world's eyes to the practical potential of AI. 2. **Boom**: Major tech players like Microsoft and Google, driven by FOMO, rapidly ramped up their AI efforts. This phase saw a mushrooming of AI startups and massive venture capital inflows. 3. **Euphoria**: We're currently in this stage, with colossal investments and ambitious projects like OpenAI’s push for AGI and Microsoft's Stargate supercomputer. However, this excitement is largely speculative. 4. **Profit-Taking**: Despite the hype, real profits remain scarce, mostly limited to hardware makers like Nvidia. The financial sustainability of many AI ventures is still in question. 5. **Panic**: The article predicts a future correction, potentially triggered by regulatory actions, shareholder disillusionment, or environmental concerns. Exponential growth cannot continue indefinitely. 💬 Our Take: While the AI landscape is undoubtedly exciting and transformative, this analysis serves as a cautionary reminder. The parallels to past tech bubbles are striking, urging investors and stakeholders to temper their enthusiasm with a dose of realism. 🔗 https://lnkd.in/eTt64pPM #AI #Investment #TechBubble #Innovation #ChatGPT #OpenAI #Nvidia #Microsoft #Google #VentureCapital #FutureOfTech

Fast Company’s 10 Most Innovative People of the Last 10 Years - Featuring Microsoft CEO, Satya Nadella ✨ From joining Microsoft in 1992, as computer networks were just taking off, to leading the AI race in 2024, Satya Nadella’s journey has been remarkable. During Satya's leadership, Microsoft's market cap went up more than tenfold, reflecting his ability to focus on new possibilities rather than past glories. Fast Company shared Satya's recent achievements including: ✅ Partnership with OpenAI, the groundbreaking technology behind ChatGPT. ✅ Partnership with AI startup Mistral AI, a rising competitor known for its open-source AI. ✅ Hired Google DeepMind cofounder Mustafa Suleyman to head a new Microsoft consumer AI group. 🔗 Read the full story here: https://lnkd.in/gqX4babh #microsoft #fastcompany #EmployeeCreator #technology #artificialintelligence #AI

Accile AI Chronicles: Daily Industry News Microsoft and Apple back away from OpenAI board Microsoft and Apple have opted out of taking board seats at OpenAI amid increased scrutiny on big tech's AI involvement. Regulatory concerns likely influenced this move. Microsoft's and Apple's decisions may impact OpenAI's strategic direction and partnerships. #Microsoft #Apple #OpenAI #AI #regulation Critique: The summary does not include concrete reasons for Microsoft and Apple's withdrawal from the OpenAI board, missing the opportunity to delve deeper into the implications of their decisions. A more critical analysis of the potential effects on OpenAI's governance and relationships could enhance the summary. The full article is available here: https://lnkd.in/eWu96HjS Accile Consulting - AI Automation Specialists Are you looking to enhance your customer experience and keep up with the latest AI advancements? Partner with Accile Consulting to tap into the full potential of AI Automation and revolutionize your business. #AccileConsulting #AIIntegration #Innovation #Partnership #AIAutomation.

📢 OpenAI's Financial Struggles: A Closer Look 📢 OpenAI, a leading player in the AI landscape, might face bankruptcy within the next 12 months. Despite generating $3.5 billion in revenue, the company's $7 billion expenditure on AI model training and $1.5 billion on staffing has resulted in a projected $5 billion loss. Here's a breakdown of the situation: - Operational Costs: $700,000 per day to keep ChatGPT running. - Revenue Generation: $2 billion annually from ChatGPT and $1 billion from LLM access fees. - Funding: Over $11 billion raised across seven rounds, with a current valuation of $80 billion. - Capacity: Nearly 290,000 of its 350,000 servers are dedicated to ChatGPT. Despite the challenges, OpenAI remains committed to advancing AGI. However, the financial strain suggests another funding round might be essential to stay afloat. The AI industry is booming, with giants like Microsoft, Apple, and NVIDIA profiting from early investments. Yet, OpenAI’s financial hurdles highlight the immense costs and risks involved in pushing the boundaries of technology. 🔗 Stay informed on this critical development in the AI sector. #AI #Microsoft #financialmanagement

🔥 Hot off the press: OpenAI's valuation is skyrocketing faster than ChatGPT can finish your sentences! 📈 The AI powerhouse is closing in on a mind-bending $6.5 billion funding round, with some serious players joining the party: SoftBank Group: Dropping a cool $500 million 💰 Microsoft: Upping their stake by another $1 billion 💼 Thrive Capital: Leading the pack with $1 billion+ 🦁 But wait, there's more! 🍎 Apple decided to sit this one out. Maybe Siri got jealous? OpenAI's projected numbers are giving Silicon Valley whiplash: 2024 Revenue: $11.6 billion 2029 Target: A whopping $100 billion 🤯 Is this the dawn of the AI gold rush? Time to dust off those machine learning textbooks! 🤖📚 #ArtificialIntelligence #TechInvestment #OpenAI #FundingRound #AIRevolution #SiliconValley #FutureTech #InnovationNews What are your thoughts on this AI investment frenzy? Let's discuss in the comments! 👇