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AI’s slowdown is everyone else’s opportunity

Businesses will benefit from some much-needed breathing space to figure out how to deliver that all-important return on investment

    • For much of this year already, AI researchers have been looking at new paths for improving their models that don’t just involve throwing more data and computing power at them.
    • For much of this year already, AI researchers have been looking at new paths for improving their models that don’t just involve throwing more data and computing power at them. PHOTO: REUTERS
    Published Thu, Nov 21, 2024 · 05:00 AM

    THE multi-trillion-dollar artificial intelligence boom was built on certainty that generative models would keep getting exponentially better. Spoiler alert: they aren’t.

    In simple terms, “scaling laws” said that if you threw more data and computing power at an AI model, its capabilities would continuously grow. But a recent flurry of press reports suggests that’s no longer the case, and AI’s leading developers are finding their models aren’t improving as dramatically as they used to.

    OpenAI’s Orion isn’t that much better at coding than the company’s last flagship model, GPT-4, according to Bloomberg News, while Alphabet’s Google is seeing only incremental improvements to its Gemini software. Anthropic, a major rival to both companies, has fallen behind on the release of its long-awaited Claude model.

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