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.