Welcome to Verses Over Variables, a newsletter exploring the world of artificial intelligence (AI) and its influence on our society, culture, and our perception of reality.

AI Hype Cycle: OpenAI’s Rollercoaster Week

In the tech world, a week can encompass a lifetime of developments. OpenAI has just experienced one such week, marked by soaring valuations, bold visions, and unexpected transitions. Each day brought new developments that rippled through the AI community, sparking discussions about the pace of AI advancement, corporate governance in the AI sector, and the balance between innovation and stability.

Day 1: Show Me the Money

OpenAI is in the midst of another funding round, raising approximately $6.5BN for a jaw-dropping $150BN valuation (vs $80BN earlier this year). It’s like watching a unicorn grow wings and breathe fire. Tech giants are falling over themselves to get a piece of the action. Microsoft, Apple, and Nvidia are all in line, wallets out, as if OpenAI were selling tickets to the Singularity, while Tiger Global is pouncing on the action like... well, a tiger. With revenue hitting the $2 billion mark and doubling its user base to 200M, OpenAI continues to surpass its AI peers. While the funding round is oversubscribed, it isn’t expected to close until October, and OpenAI will keep burning through cash like a Vegas high roller (the company spends around $7BN annually on R&D).

Day 2: Silicon Dreams

Sam Altman started the week musing about “The Intelligence Age,” offering a glimpse into his bold vision of tomorrow. A quick read on his crystal ball: the future’s so bright, you might need shades. Altman's vision of "The Intelligence Age" isn't just rose-tinted; it's technicolor. Here AI isn’t just a tool but a collaborator, dramatically expanding our problem-solving capabilities and ushering in an era of unprecedented prosperity for all. Altman believes we will owe it all to deep learning, and AI systems will evolve into personal teams of virtual experts, capable of tackling challenges from climate change to space colonization. He acknowledges the challenges ahead, particularly in labor markets and ethical considerations. Yet, Altman remains convinced that the benefits far outweigh the risks. Altman sets a time frame for this Brave New World - refering to a “few thousand days” for the coming of superintelligence. But if you do the math, and of course we did, 3,000 days is over 8 years and 10,000 days is over 27 years - it’s like telling your date you’ll be there in a few minutes, give or take a decade. Is Altman's vision the blueprint for a techno-paradise, or just a $150 billion justification wrapped in a TED talk? Only time will tell.

Day 3: Speak Easy

Remember that demo OpenAI teased a few months ago, the one that seemed like ScarJo in Her ? Well, it is finally here, fashionably late, and full of new voices. Meet OpenAI’s Advanced Voice Mode - the chatbot that's like Siri after a philosophy degree and an improv class. This digital chatterbox can keep up with your rapid-fire questions, throw in a chuckle, and even pretend to be out of breath. It's the conversational equivalent of intellectual parkour. But don't expect it to belt out your favorite tune or set a timer. This AI is more interested in discussing the meaning of life than remembering your grocery list. It's that brilliant but slightly odd friend who's fascinating to talk to but might leave you wondering, "Wait, what just happened?" Of course, it's not without its quirks. It might cut itself off mid-sentence or forget what you were talking about faster than a goldfish. And if you're in the EU, you're out of luck – apparently, this chatbot doesn't do accents, (actually, regulations).

Day 4: Corporate Shuffle

OpenAI is eyeing a corporate makeover that would make even the most ruthless Wall Street sharks nod in approval. The company that once wore its non-profit status like a halo is now considering a switch to a for-profit benefit corporation. The company plans to shed its non-profit chrysalis and emerge as a full-fledged, for-profit butterfly. (At OpenAI, even the corporate structures are evolving to be smarter.) This corporate reshuffle could turn OpenAI employees into Silicon Valley's newest crop of millionaires. Sam Altman is rumored to get his first taste of OpenAI equity potentially worth more than the GDP of a small nation at over $10BN. We’ll see who wins in the race to AGI - humanity or profits.

Day 5: The Great Escape

Just when we thought the week couldn’t get any wilder, the company’s C-suite decided to play another game of musical chairs. First to bid adieu was Mira Murati, the Chief Technology Officer who probably knows more about AI than most of us know about our own smartphones. Hot on her heels was Bob McGrew, Chief Research Officer, presumably off to research greener pastures. Not to be outdone, Barret Zoph, VP of Research, also decided to join the exodus. It's like watching the cast of "Friends" leave one by one, but with more algorithms and less coffee. Lastly, Wojciech Zaremba, one of the co-founders, wrote a farewell note to the team, which seemed to contain a few HR violations, but who are we to complain. Now, we're not ones to speculate, but when three top brains bail in rapid succession, it raises more eyebrows than a Botox convention. Sure, they all mumbled something about "personal life" and "new opportunities," but let's be real – in tech speak, that's about as believable as "the check is in the mail." Could it be the siren song of cashing out? After all, with OpenAI's valuation soaring higher than a SpaceX rocket, those stock options must mighty tempting. Or perhaps it's the pressure of working at the forefront of AI, where every day feels like you're juggling nitroglycerin while riding a unicycle. As for the rest of us, we'll be here, popcorn in hand, watching this AI drama unfold.

As the dust settles on OpenAI's fever dream of a week, we're left wondering if we've just witnessed the world's most expensive tech soap opera or a glimpse into the future of AI. From unicorns sprouting wings to executives playing high-stakes hopscotch, OpenAI has given us enough material to fill a season of "Silicon Valley: The Next Generation." But let's not forget the bigger picture here. In the race to artificial general intelligence, OpenAI is burning cash faster than a Tesla on ludicrous mode, reshaping its corporate DNA, and watching its brainiest talents do the moonwalk out the door. This may be the price of progress or a cautionary tale in the making, and at least we’ll have enough material to keep the blogs going.

Tool Update

Meta’s Orion: Spec’s Appeal

What It Is: Remember when Meta rebranded and we all thought Mark Zuckerberg was off chasing digital butterflies in the metaverse? Well, it turns out the tech giant was busy cooking up something a bit more... tangible. While Apple's Vision Pro gathered dust on store shelves, Meta was quietly revolutionizing how we see the world—literally. Meta announced Orion — augmented reality glasses that's less "clunky headset" and more "stylish specs." The tech packed into Orion includes: a wide field of view for immersive AR experiences, integration with Meta's AI assistant for contextual help, and the ability to handle everything from video calls to messaging apps. It's an attempt to move beyond the limitations of smartphone screens and create a more intuitive digital interface. These glasses are the culmination of a five-year quest to merge our digital and physical realms without making us look like extras from a low-budget sci-fi flick.

How We Use It: Well, we can’t. Orion won't be available to consumers just yet. Rumored to cost around $10,000, Meta is saving the test glasses for “internal use only”. Meta plans to use these glasses as a testbed, gathering employee insights from employees and select external users to refine the technology. This approach suggests a commitment to getting the product right rather than rushing to market. 

If you happen to be desperate to try on a pair of AR sunglasses that make you look like you stepped out of Running Man, Snap also launched their Spectacles 5 (for developers).

We’ll be talking about our favorite tools, but here is a list of the tools we use most for productivity: ChatGPT 4o (custom GPTs), Midjourney (image creation), Perplexity (for research), Descript (for video, transcripts), Claude (for writing), Adobe (for design), Miro (whiteboarding insights), and Zoom (meeting transcripts, insights, and skip ahead in videos).

Intriguing Stories

From Fallout to Rollout: Microsoft is leading an initiative to revitalize the Three Mile Island nuclear plant, signaling a significant shift in how tech giants approach their energy needs. This move is part of a larger strategy combining advanced technology, clean energy, and substantial financial backing. Microsoft has committed to a 20-year power purchase agreement with Constellation Energy to restart Unit 1 of Three Mile Island. This reactor, shut down in 2019 due to economic pressures (not the infamous Unit 2 of the 1979 accident), is now slated for a 2028 comeback. It's expected to generate 835 megawatts of carbon-free energy, primarily powering Microsoft's expanding network of data centers. But this isn't just about Microsoft going green. It's a calculated move in AI infrastructure development. Enter BlackRock and the Global AI Infrastructure Investment Partnership (GAIIP), a coalition aiming to raise up to $100 billion to construct data centers and their supporting energy grids. While the Three Mile Island deal is separate from GAIIP, it aligns perfectly with the partnership's goals. This collaboration between tech and finance giants underscores the massive investment required to build the foundation for our AI-driven future. The project's impact extends beyond Microsoft's carbon footprint. It's projected to inject $16 billion into Pennsylvania's GDP, create 3,400 new jobs, and generate $3 billion in tax revenue over two decades. Moreover, it's expected to slash regional carbon emissions by 3 million metric tons annually. This nuclear renaissance at Three Mile Island represents a broader trend of tech companies seeking reliable, carbon-free energy sources to power their voracious data centers.

Microsoft isn’t the only tech company focused on nuclear. Oracle is also designing a data center with permits for three modular nuclear reactors, according to its co-founder, Larry Ellison. And the financial sector is all in. Fourteen of the world’s largest banks pledged to increase their support for nuclear energy financing during NY Climate Week, although what exactly that means is yet to be determined.

Power Surge: Now that we’ve got the lights turned back on, OpenAI has approached the US government with a plan to construct massive data centers, each requiring a staggering 5 gigawatts of power – equivalent to the energy needs of 3 million homes. CEO Sam Altman presented this initiative as a crucial step in maintaining U.S. dominance in AI. The pitch is compelling: job creation, economic growth, and a fortified position in the global AI race, particularly against China. However, the proposal isn't without its challenges. Energy industry leaders express concerns about the feasibility of such power-intensive projects. The scale of these data centers would be unprecedented, pushing the boundaries of current infrastructure capabilities. OpenAI's proposal arrives when power projects across the nation already face significant hurdles, from grid connection delays to supply chain issues.

Code of Honor: The European Union is making strides in AI governance with its newly unveiled AI Pact, a voluntary initiative designed to bridge the regulatory gap until the EU's comprehensive AI Act comes into full force. This preemptive measure has already garnered support from over 100 signatories, including tech heavyweights Amazon, Google, Microsoft, and OpenAI. At its core, the Pact asks companies to commit to three fundamental actions: implementing an AI governance strategy, identifying high-risk AI systems, and fostering AI literacy among staff. Beyond these baseline requirements, signatories can choose from a menu of additional pledges, such as labeling AI-generated content or disclosing AI interactions to users. However, the absence of certain key players is noteworthy. Apple's signature is missing from the list, and Meta has explicitly stated its preference to focus on compliance with the forthcoming AI Act itself. This hesitance may stem from the stark contrast between the Pact's voluntary nature and the AI Act's hefty penalties, which could reach up to 7% of global annual revenue for severe infractions.

Collision of Cultures: In a convergence of creativity and technology, two titans of innovation are making waves in the AI world. James Cameron, the filmmaker who brought us fantastical worlds and groundbreaking visual effects, is joining forces with Stability AI. Meanwhile, Jony Ive, the design virtuoso behind Apple's most iconic products, is partnering with OpenAI's Sam Altman to reimagine our relationship with technology. Cameron's appointment to Stability AI's board of directors marks a significant moment in the marriage of Hollywood and Silicon Valley. The director, known for pushing the boundaries of visual storytelling, brings his unique perspective to a company at the forefront of image generation AI. It's a collaboration that promises to expand the horizons of what's possible in visual media, potentially revolutionizing everything from special effects to interactive storytelling. On the hardware front, Ive and Altman are embarking on an ambitious project to create an AI-powered device that could redefine our daily interactions with technology. With a potential billion-dollar investment and a team of top-tier designers, they aim to craft something that's not just smart, but also more mindful of our attention and social interactions. It's an intriguing proposition in an age where our devices often feel more distracting than helpful. These partnerships represent more than just big names joining forces; they signify a shift in our thinking about AI's role in creative industries. Cameron's involvement suggests a future where AI becomes an integral part of the filmmaker's toolkit, while Ive and Altman's project hints at a more seamless and intuitive integration of AI into our daily lives. As these visionaries apply their considerable talents to the world of AI, we're likely to see innovations that blur the lines between human creativity and machine intelligence.

Me, Myself and AI: Ever feel like social media isn’t filled with enough bots? No, we haven’t either, but apparently, if you’d like to bump up your own echo chamber and scream into the digital abyss, try Social AI. This new app replaces all human users (except yourself) with AI bots, crafting a uniquely personalized experience. Picture a Twitter-esque interface where your witty observations and profound musings never go unnoticed. Here, you can handpick your audience, choosing from an eclectic mix of virtual personalities – from cheerleaders to skeptics, visionaries to nerds. It's like assembling your dream dinner party guests, if those guests were powered by algorithms rather than appetites. SocialAI aims to provide a judgment-free zone for self-expression, a digital cocoon where users can share thoughts without fear of human criticism or trolling. The AI responses offer consistent engagement – a stark contrast to the tumbleweeds that sometimes roll through our real social media feeds. While it offers a safe harbor from the storms of internet negativity, it also removes the unpredictability and genuine connection that define human exchanges.

— Lauren Eve Cantor

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