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- OpenAI is spending billions of dollars more than it’s making.
OpenAI is spending billions of dollars more than it’s making.
PLUS: Meta's new model, SAM 2
Michael Parrish
July 30, 2024
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Good morning, human brains, and welcome back to your daily munch of AI news.
Here’s what’s on the menu today:
ChatGPT costs too much money 🤖 💸
OpenAI is spending billions of dollars more than it’s making.
Meta’s new model, SAM 2 🎬 ✂️
This new model segments objects in both images and videos in real-time.
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MAIN COURSE
ChatGPT costs too much money 🤖 💸
On Wednesday, The Information reported on OpenAI's 2024 budget, with a potential $7 billion tab for AI training and inference.
True Value: OpenAI could lose as much as $5 billion this year, we estimate, suggesting it will need to raise money again soon.
From @amir and @aaronpholmes
— The Information (@theinformation)
1:05 PM • Jul 24, 2024
That's a lotta cash. What's the breakdown?
OpenAI is spending $4 billion for ChatGPT inference on Microsoft servers, $3 billion for training new models, $1.5 billion for its growing 1,500-person workforce, and more.
They’re making money, right?
Yeah, but not enough. They're pulling in about $2 billion annually from ChatGPT, $1 billion from LLM access fees.
So what?
OpenAI could be staring down a $5B loss this year. They might need to pass the hat around for more funding within 12 months.
How are they making this work?
Microsoft's giving them a sweet deal on Azure compute - about $1.30 per A100 server per hour. That's way below market rate.
Is this sustainable?
That's the billion-dollar question. OpenAI's betting big on AI dominance, but it's a costly gamble.
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SIDE SALAD
Meta’s new model, SAM 2 🎬 ✂️
Yesterday, Meta just unveiled SAM 2 at SIGGRAPH 2024. It’s a new AI system that identifies and outlines objects in both images and videos.
What's the big deal?
SAM 2 can segment objects in both images and videos in real-time. It's like giving your computer superhuman vision.
Cool. What can it do?
It allows you to segment any object in images or videos, process video frames on the fly with its “streaming memory” design. It outperforms previous models in speed and accuracy.
Let me guess, I can’t use it?
Meta's releasing SAM 2 as open-source under an Apache 2.0 license. They're also dropping a massive dataset called SA-V for researchers to play with.
What's it good for?
Think streamlined video editing, smarter self-driving cars, and more advanced robotics. The possibilities are pretty wild.
So, it’s good?
It's not perfect. SAM 2 struggles with drastic camera changes, long object occlusions, and super detailed or fast-moving objects.
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Think Pieces 🧠
SIGGRAPH 2024 got weird. Nvidia CEO Jensen Huang and Meta CEO Mark Zuckerberg swapped jackets, and complimented each other on their physiques.
Startup News 💰
Apple’s AI features won’t come out till October. The features, including improvements to Siri, will now arrive with iOS 18.1 and iPadOS 18.1 (around Sept).
Research 👨🔬
Diffree — a model that adds objects to images using text descriptions, ensuring background consistency without needing masks.
AgentScope — a multi-agent platform designed for large-scale simulations, addressing scalability, agent diversity, and management efficiency.
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