GPT-5 Is Coming In 2024? Sam Altman Announces Updates at Y Combinator W24

Summary

The 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.

Keywords

💡GPT-5

GPT-5 is the next version of OpenAI's Generative Pre-trained Transformer language model that is expected to be released in 2024. The video discusses some of the expected improvements in GPT-5 like better reasoning abilities, increased reliability and consistency, more customizability, and the ability to connect with personal data sources.

💡reasoning ability

One of the most important expected areas of progress for GPT-5 is improving its reasoning abilities. Currently GPT models have very limited reasoning capacity but the speaker notes this is a key focus for future iterations. Better reasoning would allow GPT-5 to provide more logical, nuanced responses.

💡reliability

In addition to reasoning, reliability of responses is called out as an important area of improvement for GPT-5. The goal is for it to provide the best possible response consistently, instead of varying widely across repeated queries.

💡customizability

The speaker notes people want AI systems like GPT tailored to their specific needs and preferences. GPT-5 is expected to enable much more customization in areas like the style of responses, underlying assumptions built into the model, and integration with personal data sources.

💡startups

With the advancements expected in GPT-5, startups need to avoid directly competing with or replicating its capabilities. Effective startup ideas would either contextualize the technology for specific use cases or focus on markets less vulnerable to automation.

💡services

For startups without coding skills, the speaker recommends focusing on building services to help businesses integrate GPT-5 into their operations. Coding startups could offer GPT-5 software services, targeting niche problems not easily replicated by the core model.

💡micro niche

When using GPT-5 to build software services, the advice is to start by solving micro niche problems vs. attempting to recreate the full model. Meet focused customer needs first, then expand capabilities over time.

💡automation

The speaker cautions startups to consider which markets may be taken over by AI automation in the future. Certain direct services like web design agencies face significant displacement risk from evolving generative AI.

💡API

Much of the discussion focuses on startups strategically leveraging GPT-5 via its API rather than attempting to compete with it directly. Continued API access is vital for many new innovations built atop AI models.

💡change

A repeated theme is the transformative nature of advances like GPT-5, which may drive changes across industries and society compared to past technological shifts like the internet. Monitoring these changes closely is key.

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