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  • MC.36: OpenAI’s New Model Goes Free – What It Means For the World

MC.36: OpenAI’s New Model Goes Free – What It Means For the World

This week, we cover the new OpenAI model release, with the best part beyond just the tech. Plus we discuss the future of media outlets threatened on multiple fronts.

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Hello everyone,

The beginning of the week brought many announcements, but the most impactful was the business decision to open the new OpenAI model for free.

This means free education and faster adoption. Will this spark a worldwide productivity boost? Will competitors like Google follow the same path and offer similar benefits?

First, they need to roll out the new model features to everyone, which hasn't happened yet.

Another big topic: the threat to the future of media publishers.

Facebook deprioritizes news in people's feeds, Perplexity gains users, and Google rolls out its AI Overview feature. Overall, this means fewer visits to news websites.

The value for end users is clear: you ask your questions and get answers backed by links. Even if the links are cited, you're less likely to visit the websites because you got your answer.

This is a direct loss of revenue for media.

More over, businesses may lose the incentive to create content to drive traffic through search engines, potentially killing low-quality websites, spammers, and affiliate sites.

This is a positive development, as people have criticized Google for years about the drop in search result quality. However, it might harm media. Big publishers may secure deals, but these may not cover their revenue loss, making them even more dependent on these gatekeepers. Small publishers and content creators might not survive.

For commercial websites, ad costs will increase unless they can capture an audience. Email lists and newsletters will become highly valuable, as will app user bases. Owning your audience has always been good advice; now it might be a matter of survival.

Could this signal a return to the old internet, where most free content is created by people willing to share their knowledge and passions without monetization in mind?

Cheers,

Sam

In this issue:

🔍 Ethan Mollick: What OpenAI did
🖼️ Simon Willison: ChatGPT in “4o” mode is not running the new features yet
📊 Adweek: Leaked Deck Reveals OpenAI's Pitch on Publisher Partnerships
🐦 Sam Altman: Tweet on Ilya Sutskever's Departure from OpenAI
📱 Google I/O 2024: Sundar Pichai on Gemini, AI progress and more
💻 Google for Developers: Gemini API Developer Competition
🌐 Google: As AI Overview rolls out to more people, websites brace for carnage
🏢 IBM: Granite AI models for business
🇫🇷 Microsoft: $4 billion investment in France to accelerate AI
📉 Similarweb: Stack Overflow is ChatGPT Casualty
📰 Facebook: Referrals to news down 50% in 12 months
💰 Intercom: Investing $100 million of its own cash in AI technology

Updates & tools

Ethan Mollick: What OpenAI did
OpenAI's GPT-4o isn't just a technical upgrade but a significant business move, offering the advanced model for free to everyone. This could democratize AI accessibility, potentially leading to a massive productivity boost. MORE

Simon Willison: ChatGPT in “4o” mode is not running the new features yet
OpenAI's new GPT-4o model boasts impressive voice and image capabilities, but these features aren't yet available to all users. Despite this, the image generation advancements alone seem to have finally nailed consistent character representation and reliable text output. MORE

Adweek: Leaked Deck Reveals OpenAI's Pitch on Publisher Partnerships
OpenAI's approach to citing publishers might reduce web traffic to publishers' sites, posing a dilemma for media outlets. It’s a catch-22 situation where exclusivity and premium content could either save or sink publishers. MORE

Sam Altman: Tweet on Ilya Sutskever's Departure from OpenAI
Ilya Sutskever and Jan Leike are leaving OpenAI, which is a significant loss given their critical contributions to GPT models. Jakub Pachocki steps in as the new Chief Scientist, marking a new chapter for the company. MORE

Google I/O 2024: Sundar Pichai on Gemini, AI progress and more
Google is launching Gemini 1.5 Flash, a lightweight AI model optimized for low latency and cost-effective tasks. The pro version gets an upgrade with a massive context window of 2 million tokens. MORE

Google for Developers: Gemini API Developer Competition
Google is offering up to $1 million in prizes for developers who build apps using the Gemini API. This is a clever way to attract developers to their platform, especially when competing with OpenAI which have a better brand and models. MORE

Google: As AI Overview rolls out to more people, websites brace for carnage
Google's new AI search might make it unnecessary to visit websites for answers, raising questions about the future of free content online. This could potentially eliminate spammy sites but also challenges commercial websites to adapt. MORE

IBM: Granite AI models for business
IBM has open-sourced its Granite AI models, which are specifically tailored for business applications like programming. It's surprising to see such a traditionally closed company going open source. MORE

Microsoft: $4 billion investment in France to accelerate AI
Microsoft is making another major investment, this time in France, to support digital innovation and economic growth. Seriously, is there any country where Microsoft hasn't invested billions recently? MORE

Similarweb: Stack Overflow is ChatGPT Casualty
Stack Overflow is losing traffic while ChatGPT continues to soar, even overtaking Bing in global traffic. They lost 14% in March. At the same time, they closed a deal with OpenAI but users are protesting by sabotaging answers. MORE

Facebook: Referrals to news down 50% in 12 months
Facebook's decision to deprioritize news in user feeds has led to a 47% drop in off-platform revenues for publishers. This trend signals a growing crisis for media outlets as two of their strongest traffic sources are going down: social and search. MORE

Intercom: Investing $100 million of its own cash in AI technology
Intercom is investing an extra $100 million in new AI technology called Fin X to maintain its lead in the competitive customer service space. Easily explained when you tell folks you are chasing a $350 billion market. MORE

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