Economist Podcasts Bulls’ AI: funding artificial intelligence
11 snips
Sep 23, 2024 
Henry Trix, US tech editor at The Economist, discusses the transformative effect of OpenAI on Silicon Valley's funding landscape and innovation strategies. Anton LaGuardia, the diplomatic editor, highlights rising nuclear tensions and the looming expiration of key arms control agreements. Meanwhile, Helena Woods, a professional astrologer, delves into the intriguing rise of political astrology and its impact on forecasting electoral outcomes, merging ancient wisdom with modern political analysis.
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OpenAI's Impact on Venture Capital
- OpenAI's dominance in AI is changing Silicon Valley's investment landscape, requiring larger investments.
- Traditional venture capitalists are being edged out by big tech companies like Microsoft due to the substantial capital needs.
Venture Capitalists' Response
- Venture capitalists feel challenged by big tech firms' growing influence in AI funding.
- They are seeking alternative investment opportunities in smaller AI companies built upon large language models.
The Increasing Cost of AI
- Training large language models is getting very expensive quickly, potentially reaching billions of dollars soon.
- This cost increase fuels investment, driven by the belief that bigger models equal better performance and market dominance.