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Sam Altman explains how AI got about 1000x cheaper at solving the same hard problem from o1 to 5.4 in roughly 16 months. And that efficiency gains came from people improving every layer, not one breakthrough.

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Rohan Paul

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🚨 SAM ALTMAN: "A REDUCTION IN COST OF ABOUT A 1000X" 🤯 Sam Altman revealed the cost to solve a hard reasoning problem has plummeted by 1,000x since the release of o1 just 16 months ago (comparing o1 to the new 5.4 model). How is this possible? Altman credits two main factors: 1️⃣ We're Still in the Early Days: “We are so new to this paradigm that there is massive room for improvement. We're still doing things in "dumb ways" and getting better fast.” 2️⃣ Human Ingenuity is Underrated: “It's not just the models getting better. It's kernel engineers, power engineers, and data center designers finding brilliant ways to optimize every step of the process.” The compounding effect of better models + better human engineering is driving an exponential decrease in the cost of AI reasoning.
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One of the best talks on AI over the past year was at Burning Man. Burning Man Project We’re grateful to share this recording with permission from Sam Altman (Sam Altman technologist, CEO of OpenAI & creator of ChatGPT) and Android Jones (Android Jones ) talking about “The Future of Art in the Age of AI.” It’s real, it’s raw, and it could have only happened in Black Rock City. Afterward Sam texted Android and I, and said that he took notes from this conversation, sent them to the OpenAi team, and that it changed their path forward.
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