GPT-5 Is Coming In 2024? Sam Altman Announces Updates at Y Combinator W24
Summary
TLDRThe video discusses the implications of the upcoming release of GPT-5, a new AI model from OpenAI. It starts by showing a clip from a recent AI conference where an expert explains GPT-5 will have improved reasoning abilities compared to GPT-4. The host then analyzes tweets from another AI expert that contain key takeaways from the conference. The first takeaway is that startups need to focus on contextual optimization rather than just behavioral optimization. This means startups should avoid building on top of GPT-5's capabilities, and instead provide unique value and solve niche problems. The second takeaway is GPT-5's API will likely get better and cheaper over time, which is positive but may also increase competition. The third warns startups against simply repackaging GPT as their own product. The host explains most people are unaware of advances in AI, so GPT-5 will be a wake-up call. He then outlines two potential business paths: services for non-coders, and software for coders. For non-coders, the focus should be building services that integrate GPT-5, since most businesses won't understand it. For coders, they should build niche software that solves focused problems, not just repackage the API. Overall, the key message is GPT-5 will be transformative, so startups need to provide unique value not easily replicated by the technology itself.
Takeaways
- GPT-5 will likely launch in 2024 and bring major improvements in AI reasoning ability.
- GPT-5 may operate like an advanced personal assistant that understands user data and preferences.
- Startups should focus on solving niche problems rather than competing directly with large AI companies.
- Non-coding startups can offer AI integration services to help businesses adopt new tech.
- Coding startups can build niche SaaS products that solve specific problems.
- AI website builders will likely make web design agencies obsolete in the future.
- Most people are currently unaware of rapid AI progress and will be surprised by GPT-5.
- API costs are decreasing which will increase competition but improve startup viability.
- Services that support human needs not easily replicated by AI have an advantage.
- Being an early mover provides opportunity, but the space moves quickly.
Q & A
What year is GPT-5 expected to launch?
-GPT-5 is expected to launch in 2024.
How might GPT-5 operate as an AI system?
-GPT-5 may operate like an advanced personal assistant that can understand user data, preferences, calendar info etc.
What is the suggested strategy for AI startups to avoid competition with large companies?
-Startups should focus on solving niche problems rather than competing directly in areas targeted by large AI companies.
What services could non-coding startups offer?
-Non-coding startups could offer AI integration services to help businesses adopt new technologies like GPT-5.
What is the suggested approach for coding startups?
-Coding startups can build niche SaaS products that solve specific problems vs. replicating large AI models.
How will GPT-5 impact web design agencies?
-AI website builders will likely make traditional web design agencies obsolete in the future.
What is the current awareness of GPT-5 capabilities?
-Most people are currently unaware of the rapid pace of AI progress and will be surprised by GPT-5 abilities.
How are API costs changing?
-API costs are decreasing which will increase competition but improve startup viability.
What types of services will have an advantage?
-Services that support human needs not easily replicated by AI have an advantage.
Why is being an early mover important?
-Being an early mover provides opportunity, but the AI space moves quickly so timing is key.
Outlines
Introduction and Overview
The paragraph introduces the video, stating it will provide information revealed at a recent AI conference regarding GPT-5, a new reasoning-focused AI model slated for release in 2024. It previews key topics like how GPT-5 will impact startups and what it means for the future of AI.
Insights from the AI Conference
This paragraph summarizes key insights shared at the conference. GPT-5 will focus on improving reasoning ability and reliability compared to GPT-4. Customizability, personalization, and connectivity to user data are other areas of focus. The improvements could make GPT-5 integral like an advanced operating system.
Other Relevant Twitter Insights
Three main Twitter insights are highlighted: Startups need to provide more contextual optimization versus just behavior optimization to avoid direct competition with GPT-5. The GPT-5 API will improve and get cheaper, forcing startups to provide unique value. Startups should avoid just rewrapping GPT-5 and instead focus on unique reasoning abilities.
The Significance of GPT-5
This emphasizes GPT-5's significance, stating it will 'wake up' many people currently unaware of AI's progress. Staying informed is key, as GPT-5 represents a new phase of the AI revolution that will drive major changes.
Starting an AI Business
The paragraph contrasts coding and non-coding pathways for starting AI businesses. Non-coding focuses on services, while coding enables software-as-a-service. Key advice includes solving a micro-niche problem first and targeting markets resilient to displacement by future AI.
Conclusion
The concluding paragraph recaps the key points about GPT-5 and starting an AI business. It encourages checking out accompanying playlists and videos for more details.
Mindmap
Keywords
💡GPT-5
💡reasoning ability
💡reliability
💡customizability
💡startups
💡services
💡micro niche
💡automation
💡API
💡change
Highlights
GPT-5 will focus on improving reasoning ability, reliability, customizability, and personalization.
Startups need to provide contextual optimization rather than just behavior optimization to differentiate from large AI companies.
Don't build startups that just rewrap GPT-4 APIs, as they will get disrupted when GPT-5 releases.
Focus on solving micro niche problems rather than trying to reinvent the wheel.
Build services catered to markets resilient to AI disruption.
Non-coders should focus on building integrator services using automation platforms.
Coders should build niche SaaS products that leverage AI APIs.
Solve micro problems first, additional value can be layered on later.
Serve markets that won't disappear with future AI advances.
Don't build services like web design agencies that will be automated.
Most businesses are unaware of AI advances, so huge opportunity exists.
Many missed the GPT-3.5 and GPT-4 hype, GPT-5 will wake them up.
Stay on top of AI advances, as they are like a new internet.
Check out concept to software videos for tangible startup ideas.
We're still early, but don't wait until 2030 to jump on the AI train.
Transcripts
most important areas of progress will be
around reasoning ability right so in a
recent conference we got a little bit of
information about gbt 5 that will be
coming out and possibly coming out this
year in today's video we're going to
learn everything that happened yesterday
at this event we're going to learn what
this means for people trying to do
startups we're going to learn what gbt 5
even is and overall just get a premise
and idea of what is going to happen in
2024 when it comes to AI welcome back
y'all so I learned about this because of
the fact that I saw trending here and I
saw GTB T5 a lot of times this kind of
stuff is just clickbait so I'm just like
you know what the heck could this be I
clicked it and this is very real I made
a tweet on it and basically this is
going to be my video on it this is going
to give my perspective on what this
means I'm going to give Insight of if
you want to start a company in 2024 when
it comes to AI like what to do in this
context as this changes a lot this
stuff's moving extremely fast like I
don't even know what the next 5 years
are going to look like this is going to
be pretty crazy stuff y'all this is
pretty transformative stuff but to start
off in today's to video let's just go
watch a video from this conference to
give us more context of what's incurring
here side note make sure to follow me on
Twitter it is in the description down
below but let's go and watch this clip
when you look at the next two years what
what do you think some of the the key
Milestones will be multimodality will
definitely be important we started
speech in speech out speech in speech
out images eventually video clearly
people really want that we launched
images and audio and it had a much
stronger respon than we expected we'll
be able to push that much further but
maybe the most important areas of
progress will be around reasoning
ability right now gp4 can reason in only
extremely limited ways and also
reliability you know if you if you ask
GPT for most questions 10,000 times one
of those 10,000 is probably pretty good
but it doesn't always know which one and
you'd like to get the best response of
10,000 each time so that'll be that one
thing I want to point out when he starts
diving into this conversation ation this
is basically he's going to describe how
gbt should be applied in future context
and let's translate this he's basically
saying don't mess with me in this Niche
that I'm about to say right now which is
a pretty big
Niche that that that increase in
reliability will be important
customizability and personalization will
also be very important people want a
very different very different things out
of gp4 different styles you know
different sets of assumptions
we'll make all that possible and then
also the ability to have it use your own
data so the ability to know about you
your email your calendar how you like
appointments
booked that's
huge that is like basically kind of
entertaining an idea of an operating
system in a way in the sense of that
movie Her Like I referenced in the other
video but imagine basically a operating
system that knew all the data knew
everything about you and communicated
with you like a human I mean they're
playing they're basically playing like
we want the big part of the pie here
connected to other outside data sources
all of that those will be some of the
most important areas of improvement okay
so from this event we got a bunch of
other information as you see from our
Twitter post here from Jason you can go
aead and check him out on Twitter let's
go ahead and go over the ones that seem
relevant to me and cool stuff we should
ask so coming up to this Twitter post
this was actually the original one that
I found that I was like okay is this
real and basic basically this person
gave us a ton of information when it
comes to this I even said my own little
tweet you can go and like it if you want
to like it but if I scroll down here I
believe he dived a little bit deeper
okay so yeah three main points here so
the first one is that startups need to
contextualize optimization more than
Behavior optimization basically what
this is saying is a lot of startups are
going to be chopped at the knees if the
market they're trying to serve is going
to be the same Market Microsoft trying
is trying to serve or sorry open AI a
nonprofit uh is trying to serve so let
me go ahead and just describe that a
little bit more General so the idea here
is this kind of okay actually I can give
a real example here as we know in
November we had Dev day what happened
during Dev day that we knew basically
chopped a lot of startups at the needs
the gbt store so it's that kind of idea
people that TR create startups that are
basically they call them rapping are you
if you're rapping uh basically chat gbt
so in this context I have Chad gbt 4 and
then I have mega AI all Mega AI is Chad
gbt 4 but just rebranded as Mega AI
these kind of companies are going to get
absolutely clobbered and we already saw
that with Dev day so this is an example
of what's incurring here in the context
of hey when we are going to go to gbt 5
and when this incurs you don't want to
be in a position where basically the
functionality and the value you provide
gbt 5 can do it as well because at that
point open AI just says goodbye Avid Zin
check out number two second one this is
very interesting y'all so from the event
they found that obviously the API will
get better I hope so outages can be
annoying during development but also
cheaper this is pretty crazy y'all when
uh this whole thing started uh Chad gbt
open AI like the prices are pretty
expensive but then Dev day incurs and we
got a slash by
50% this was very advantageous and
really good cuz it's just like holy
smokes like that really helps with cost
and processing of data but it was a step
in the direction that I wasn't expecting
I was actually expecting stuff to get
more expensive in the context of API
usage but they're actually going
opposite obviously because the Market's
getting more competitive with Google and
these other companies like Claude and
the thropic saying that though it
becoming cheaper is really positive I'm
really excited about that but also what
that does is that puts us in a position
where basically only the best IDE ideas
only the best value points and
businesses are really going to stand out
because end of the day I don't want to
race to the bottom when it comes to you
know certain certain services and values
you provide in the context of API that
might have been a little confusing I
also want to point out uh near the
latter half of this video I'm going to
go on a whiteboard and basically draw
out two different Paths of different AI
businesses you could start in this
basically in this new context and number
three kind of addressed what I said
earlier basically you don't want to
create maybe a reskin or a of gbt 4 but
this rap is better at reasoning because
end of the day the model is going to
improve and then your company is going
to go kapoot that being said that kind
of covers most of gbt 5 in regards to
like actual relevant information we got
from this event but we want to keep
something in mind here y'all a lot of
people are asleep right now if you're
watching this video you're already part
of like the tenth of a tenth of a tenth
of a population that even realizes this
stuff's incurring a lot of people are
asleep at the wheel people that were
asleep for gbt okay I understand if you
if you were asleep for gbt 3.5 it is
what it is I mean the alarm the alarm
kind of went like 3.5 is very impressive
in the beginning and then obviously the
four was just like okay now we got we're
leaps ahead of it but if you were asleep
for
3.5 and you were asleep for four the
people that were asleep during these two
models are 100% going to be woken up by
gbt 5 this is going to be a knock at the
door like hey by the way yeah this
wasn't a fad this is here to stay so
knowing that obviously it's it's going
to be in our best interest to make sure
we stay on top of this kind of stuff
because the fact that this isn't a joke
this is like the our our version of the
new internet uh because this is going to
change a lot of stuff that being said
let's get to that latter half of this
video where I go on whiteboard and show
you two different routes you can take
all right so we got this person right
here I don't know who this is but uh
they got a really nice sweater um from
here though we got two routes so we got
a coding route and we got a non-coding
route I think that's the best way to
structure this to be honest with you as
both a is API but one's non-coding one's
coding so if I'm and I can't really
actually I can let me do this y'all I'm
going to do coding and then we'll do uh
non-coding okay I'm gon make this as
fast as possible because to be honest
with y'all YouTube for some reason only
likes to push my shorter videos maybe
when I get a larger audience it wants to
push my longer videos who knows that's
just how you YouTube algorithm works I
dive into a lot of the stuff I'm about
to describe right now a ton in all the
playlists you can see it from my channel
but let's just put it this way if you
have no coding experience and you don't
want to take the leap to coding your
best route here in the context of
starting a business is going to be
Services plain and simple Services
that's going to be your best route not
creating an AI image that goes on a
T-shirt and then selling the t-shirt on
Etsy it's going to be services this is
going to be your best route here as your
underlying business itself can be
scalable using AI automation but the
actual service itself has value because
basically majority of businesses don't
even know what the heck AI is or asleep
at the wheel and when this thing hits
the fan a lot of them are going to be
like how the heck do I integrate this so
non-coding is going to be Services
coding is going to be services but
software is a
service if you are coding so basically
for non-coding your advantage or your
point your direction is going to be
building pre-built services that are
kind of like I'm ready to integrate this
into your back end XYZ
XYZ using automation platforms like make
zapier using open a API other
alternative apis as well if you choose
to do so I prefer open AI that being
said for coding we're going to be just
doing services so your next question
might be okay but in coding context we
are just accessing the API directly
therefore how do we create a software
that isn't just a rewrap of the API as
we've seen a that is not the way to go
with this new news and honestly that has
never been the way to go the way you
want to approach this is very simple
people overthink things you're not going
to we're not trying to reent the wheel
here I'm going to give you two pieces of
advice first piece of advice is you want
to basically solve a Micro Niche problem
solve a micro problem Corbin that's not
going to make enough money Corbin that's
not a good idea Corbin trust me when you
start micro and you solve a Micro Niche
problem
software you will realize through the
Journey and through the process there
will be a ton of other stuff you add on
later on as the pain points become more
relevant to you also want to point out
if you if you reached to this point of
this if you reached to this point of the
video and you're like you know what I
want more tangible ideas go on and check
out my playlist here called from concept
to software I give there's two videos on
it one's like a Google Maps example and
one's a uh three different ones like
twitch Gmail like I actually give like
applicable examples so you can see that
being said micro then the value points
will come later second thing who are we
serving whoever you
serve play a little mining experiment of
yourself gbt 5 comes AGI comes is the
underlying Market you're
serving going to disappear or be taken
over by AI let me give you a good a
really good example of this website
design do not start a website design
agency in 2024 you're going to get
absolutely chopped at the knees when
this because AI is going to be able to
build websites give it a couple more
months give it a couple more years I
know y'all see those little Twitter
things where it's like build a website
in 60 seconds that's cap but I'm saying
genuinely there will be a point in the
future where you'll be able to put on a
prompt and it'll be able to make the
entire website for most cases too in a
lot of businesses they don't even need
anything complex and need a landing page
contact home whatever may be don't do
that Orient it Point your services
towards a demographic and a population
that's going to be resilient through
this AI Revolution so that just about
does it if you made it to this point in
the video that means everything I kind
of described there when starting a
business seemed pretty relevant to you
so check out my channel if you haven't
already as I show both Pathways and give
you Insight like real world Insight on
how to basically approach this as we're
still really early to the market here
but if you're watching this in 2030 I'm
sorry you missed the train maybe the
next train is AR VR who knows without
further Ado y'all make sure to like you
feel like you learned something check
out the playlist at the end and I'll see
you in the next video so that just about
does it in this video we learned a
little about gbt 5 and its implications
holy smokes this stuff is moving really
fast in this industry check out that
playlist right there if it interests you
you YouTu told me you would like that I
don't know and then hit that button
right there it it does something I think
it does like an explosion effect not too
sure
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