2023: The AI Race Begins
In 2023, ChatGPT was launched, marking the beginning of AI's rapid rise.
It spurred significant competition between Silicon Valley giants, especially OpenAI and Google.
Microsoft invested $10 billion in OpenAI, challenging Google to show its AI capabilities.
Google struggled initially with Bard, a half-baked AI that provided inaccurate answers.
However, by the end of 2023, Google launched Gemini, which emerged as a strong competitor to ChatGPT.
Key AI Developments in 2024
Google’s Gemini, including its second-generation model and the Trillium AI chip, has helped rebuild investor confidence and boosted stock prices.
Google also advanced in quantum computing with the Willow chip, further solidifying its position.
OpenAI's o3 model, an improvement over its predecessor o1, excelled in complex coding and advanced mathematics but faced challenges in terms of cost and computation time.
Other AI Competitors and Innovation
Amazon-backed Anthropic developed Claude 3.5, which could autonomously perform tasks like typing and browsing, boosting productivity for developers.
Mistral’s models, such as Mistral 7B and Mixtral 8x7B, promote transparency and customisation in AI. Their open-weight approach contrasts with closed-source AI models, fostering innovation.
Anthropic also focused on AI safety, notably with its Clio tool, which monitored AI usage during the U.S. presidential election.
AI’s Shift to Consumer Devices
AI models were increasingly integrated into devices like smartphones, PCs, and gaming systems for better functionality and real-time experiences.
Apple enhanced its iPhones with AI features like Visual Intelligence, boosting iPhone sales and contributing to its rise towards a $4 trillion market cap.
Companies like NVIDIA, AMD, and Apple integrated AI accelerators into PCs, enabling advanced tasks like AI-powered transcription, gaming enhancements, and video editing.
Talent Competition in AI
OpenAI experienced a significant talent drain in 2024, with key members like Ilya Sutskever and Mira Murati leaving, some joining competitors like Anthropic.
AI experts are highly mobile, and countries or companies that attract the best talent will have a competitive advantage in the AI race.
Countries open to global talent are more likely to lead in AI innovation.
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