Sam Altman's new $200 ChatGPT has a big Elon problem...

yesterday open AI launched something huge a new thing that's 10 times bigger than anything that's come before it unfortunately I'm not talking about model weights or reasoning abilities but only the price tag the new chat GPT Pro Max comes in at $200 per month and is designed for power users with unlimited access to the new 01 model but most importantly open AI is in a life or death race to protect itself from its Rivals who are becoming more and more powerful on the same day of the launch of chat GPT Pro open AI also got

some bad news one of elon's top I David Sachs was named as Trump's AI crypto Zar Sam ultman congratulated the new Zar on Twitter to which Elon replied with a Sinister laugh it's funny because Elon recently became the head of an imaginary government agency called Doge and coincidentally just filed an injunction in court preventing open AI from going nonprofit to for-profit in today's video we'll look at The Good the Bad and the Ugly of open ai's uncertain future it is December 7th 2024 and you're watching the code report before we get into the ridiculous web

of Silicon Valley drama with open Ai and the PayPal Mafia let's first talk about Chachi BT Pro this new $200 per month plan doesn't give you access to any new models that you don't have on the $20 per month plus plan but it does give you unlimited access to GPT 40 and 01 like currently on the plus plan you can only send 50 messages per week to 01 now 01 is their quote unquote reasoning model and it scores really high on coding and math benchmarks it feels similar to other models but has the ability to

prompt itself over and over again using a technique called Chain of Thought which generates reasoning tokens and has the ability to solve more complex problems especially when it comes to math and programming however this requires a lot more computing power and on the Pro Plan you get something called Pro mode to apparently do even better on these benchmarks and as an early adopter of any AI slot they'll feed me I can confirm that 01 Pro mode is actually quite impressive it almost correctly built a spelt 5 app and just look at this $200 SVG unicorn

that's impressive but I still don't think I'll be buying it for my kids this Festivus but unfortunately for open AI their massive lead in the AI space is diminishing faster and faster open AI is currently valued at $157 billion yet their actual revenue is only $300 million per month and they're currently losing billions of dollars per year on infrastructure and compute costs and that means they'll need to continue seeing massive growth in Revenue to justify this valuation but they're also facing a bunch of other headwinds like for one they have no moat models like Claude

and Gemini are arguably just as good if not better in certain situations and open models like llama and are not far behind over the last year Alman has been trying to use the government to achieve regulatory capture and crush this competition but now it's too late and he's facing a big Elon problem you see a few years ago Elon Musk overpaid for a failing social media website called Twitter is so he could ban this college kids account who made a python app to track the location of his private jet everyone laughed at him but it

turns out it was in fact a 5D chess move he parlayed his Twitter purchase to make another crazy bet to support Trump for president and now that bet is paying off in a big way because gu who just became Trump's aisar fellow African-American and member of the PayPal Mafia David Sachs he's been one of elon's most loyal supporters and also has his own AI company called glue but the bigger conflict here is elon's ongoing battle with open AI he was an original co-founder who donated more than 44 million to it as a nonprofit and now

that their plan is to transition to for-profit he believes he's been defrauded out of this money the current rumor is that Sam Alman will get a 7% stake in open AI worth about 11 billion and that's just not fair because elon's currently only worth 43 billion but he really should be worth 354 billion but Elon also has his own AI company xai with Gro and open AI has been telling its investors not to invest in competitors like xai and Alman also got busted posting misleading tweets about grock and that prompted Elon to give him the

nickname of swindley Sam and because of this the Doge father recently filed an injunction to stop open AI from going for-profit word accused it and its Affiliates including Microsoft of anti-competitive practices despite the obvious threat ultman took the high road and said quote I may turn out to be wrong but I believe pretty strongly that Elon will do the right thing it would be profoundly unamerican to use political power to hurt your competitors and Advantage your own business only time will tell how this all plays out but if you really want to leverage this Tech

you need to learn it from the ground up and you can do that today for free thanks to this video sponsor brilliant their platform provides interactive Hands-On lessons that demystify the complexity of deep learning with just a few minutes of effort each day you can understand the math and computer science behind the seemingly magic technology I'd recommend starting with python then check out their full how large language models work course if you really want to look under the hood of chat gbt to try everything brilliant has to offer for free for 30 days by going

to brilliant.org fireship or use the QR code on screen this has been the code report thanks for watching and I will see you in the next one