Greetings,

The number of people using ChatGPT is soaring, but OpenAI is facing a critical challenge the pace of improvement for its models appears to be slowing down. This week, Stephanie Palazzolo, Erin Woo, and Amir Efrati report on how OpenAI is adapting its strategy to overcome this challenge and push the boundaries of what's possible with artificial intelligence.

Why it caught my eye:

• OpenAI's next model, Orion, shows fewer improvements than the leap from GPT-3 to GPT-4.
• The company is focusing on refining models after initial training to overcome data limitations and cost challenges.
• OpenAI and other companies are shifting from pure scaling to new approaches, such as reasoning models and AI agents capable of handling multistep tasks.

It's clear that the future of AI will look very different than what we've seen in the past few years. You can read more about how OpenAI is adapting and what this means for the broader industry here.

Best,

Jessica Lessin
Founder & Editor-in-Chief

OpenAI Shifts Strategy as Rate of 'GPT' AI Improvements Slows

The number of people using ChatGPT and other artificial intelligence products is soaring. The rate of improvement for the basic building blocks underpinning them appears to be slowing down, though.

The situation has prompted OpenAI, which makes ChatGPT, to cook up new techniques for boosting those building blocks, known as large language models, to make up for the slowdown. Google is also making changes after facing similar challenges.