As Anthropic goes, so goes the generative AI trade, says Big Technology's Alex Kantrowitz
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Bloomberg
an hour ago
- Bloomberg
Wall Street and AI Startups Are Fighting Over Entry-Level Quants
At a rooftop bar on Manhattan's Lower East Side, roughly 150 quant researchers met with employees at the artificial-intelligence startup Anthropic who implored them to consider a life away from Wall Street. Over plates of potstickers and popcorn chicken, they rubbed shoulders at the June mixer with former hedge fund quants-turned-Silicon Valley evangelists who encouraged them to apply for jobs at Anthropic, according to the company. This month, the San Francisco-based firm is going global with another quant 'social hour' in London.
Axios
4 hours ago
- Axios
OpenAI aims GPT-5 at Anthropic's coding crown
OpenAI's new GPT-5 model — the engine that will power its key products, including the free and paid versions of ChatGPT — throws down a gauntlet to its arch-competitor Anthropic. The big picture: Anthropic's Claude is frequently viewed as the best AI for writing code, which could be the reason OpenAI leaned so heavily on GPT-5's coding skills as the company introduced its new model Thursday. Catch-up quick: GPT-5, announced Thursday, is OpenAI's first model to combine a traditional large language model with reasoning capabilities that allow AI engines to achieve better results by using more computing time to address a task. The company also promised GPT-5 will hallucinate less and be better at health-related tasks, among other improvements. GPT-5 will be less sycophantic than its predecessors, according to OpenAI. Pietro Schirano, CEO of AI startup MagicPath, called GPT-5 the best coding model out there and a great collaborator. "This is electricity arriving in every home," he posted on X, "a before and after moment for how we build." Yes, but: The new model arrived months later than originally expected and critics say it doesn't bring the world much closer to the kind of AI that can solve the climate crisis or cure cancer. "It will not harness the incredible power of artificial intelligence as a tool to solve humanity's most pressing challenges," Future of Life Institute president Max Tegmark said in a statement. "Instead, it will pour fuel on the fires set by its predecessors: destroying jobs, upending economies, and turbocharging scams and deepfakes." The other side: For casual users of ChatGPT, the upgrade is likely to feel significant. "The people discussing this release on Twitter will be disappointed in a first reaction, but 99% of people using ChatGPT are going to be so happy about the upgrade," Nathan Lambert wrote in his Substack newsletter. The potential new crop of users could create a fresh wave of experimentation and novel use cases, which is what happened when OpenAI increased access to ChatGPT's image generation capabilities. Between the lines: OpenAI spent much of an hourlong livestream on Thursday highlighting GPT-5's coding abilities, showing demos, touting a range of benchmarks and providing comments from a range of early testers, including Cursor, Vercel and Windsurf. "Our team has found GPT-5 to be remarkably intelligent, easy to steer, and even to have a personality we haven't seen in any other model," Cursor CEO Michael Truell said in a statement. "It not only catches tricky, deeply-hidden bugs but can also run long, multi-turn background agents to see complex tasks through to the finish." CEO Sam Altman told reporters that GPT-5 allows for on-the-fly custom software. "This idea of software on demand will be a defining part of the new GPT-5 era," he said. By the numbers: Coding prowess is driving massive revenue growth at Anthropic. Anthropic is generating revenue at a nearly $5 billion-per-year pace, according to The Information. That's up from a $4 billion-per-year pace earlier this month, and reflects its status as the go-to choice for programmers and coding apps. OpenAI, meanwhile, is currently at a $12 billion per year revenue run rate, a figure that reflects the company's broader business and larger size. Zoom out: While OpenAI heavily emphasized GPT-5's coding capabilities, the new model is replacing a host of older models, including those that power the free and paid versions of ChatGPT. Users will also be able to customize GPT-5's personality as part of a feature in research preview. The four initial options are "Cynic," "Robot," "Listener" and "Nerd." Altman insisted that once you use GPT-5 it is hard to go back to an earlier model, likening it to reverting to a lower-resolution display after you've grown used to an iPhone's Retina display.
Business Insider
6 hours ago
- Business Insider
OpenAI Launches GPT-5, Putting AI Progress and Investor Optimism to the Test
Microsoft-backed (MSFT) AI firm OpenAI has launched GPT-5, which is the newest version of the AI model behind ChatGPT. This release comes more than two years after GPT-4 was released in March 2023 and is being closely watched as a sign of whether generative AI is still advancing quickly or starting to slow down. Interestingly, earlier in the same week, OpenAI competitor Anthropic also released a new version of its Claude chatbot, which shows just how competitive the AI space is. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Unsurprisingly, people have high expectations for GPT-5 because OpenAI has long said that its progress in AI is leading toward artificial general intelligence (AGI), a kind of AI that can outperform humans in valuable jobs. To reach this goal, OpenAI is trying to raise large amounts of money in order to cover the high cost of computing power and data centers that are needed to build and operate these advanced systems. As a result of these financial requirements, the company has had to change its structure. Indeed, it was originally founded in 2015 as a nonprofit that was focused on developing AGI safely. However, OpenAI now operates a for-profit arm that may soon be valued at $500 billion, and the shift hasn't come without controversy. For example, CEO Sam Altman was briefly removed by the nonprofit board in late 2023. Although he was quickly reinstated, the incident exposed the tensions within the company's governance. In addition, OpenAI has since faced legal scrutiny from attorneys general in California and Delaware, as well as a lawsuit from Elon Musk, one of its original founders and funders. In response, OpenAI now plans to restructure its for-profit entity into a public benefit corporation. Is MSFT Stock a Buy? average MSFT price target of $624.17 per share implies 19.8% upside potential.
