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Ilya Sutskever Declares the Scaling Era Dead. His $3 Billion Bet Says Research Will Win.

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Ilya Sutskever helped prove that scale works in AI. Now he says it doesn't—and his $3 billion company is betting the future belongs to researchers with ideas, not labs with the biggest GPU clusters. The industry isn't ready for this argument. Ilya Sutskever thinks everyone is doing AI wrong. Not just slightly wrong. Fundamentally, paradigmatically wrong. In a recent interview with Dwarkesh Patel, the co-founder of Safe Superintelligence (SSI) and former OpenAI chief scientist laid out a thesis that should unsettle every frontier lab executive currently signing billion-dollar compute contracts. The age of scaling, he argues, has ended. What comes next requires something the industry has largely abandoned: actual research. "We got to the point where we are in a world where there are more companies than ideas," Sutskever observed. "By quite a bit." The statement lands differently coming from him. This is the researcher who co-authored AlexNet, helped b...

OpenAI Co-Founder: AI Agents Are Still 10 Years Away

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AI researcher Andrej Karpathy asserted in a lengthy podcast interview that while LLMs show huge progress, a decade of "grunt work" still lies ahead. When OpenAI co-founder Andrej Karpathy speaks, even Elon Musk reacts. Karpathy had just recorded a two-and-a-half-hour interview with podcaster Dwarkesh Patel. And their wide-ranging discussion challenged conventional wisdom, with Karpathy pointing out roadblocks on any road to artificial general intelligence (AGI), and arguing that we’re 10 years away from AI agents. Right off the bat, Karpathy said “there’s some over-prediction going on in the industry.” And later, on X.com, he provided specifics on his own expectations: “Basically my AI timelines are about 5-10 times [as] pessimistic with regard to what you’ll find in your neighborhood San Francisco AI house party or on your Twitter timeline, but still quite optimistic with regard to a rising tide of AI deniers and skeptics.” Conversations inevitably continued on soci...

Enterprise LLM Spend Reaches $8.4B as Anthropic Overtakes OpenAI, According to New Menlo Ventures Report on LLM Market

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Change in Enterprise LLM API Market Share By the end of 2023, OpenAI commanded 50% of the enterprise LLM market, but its early lead has eroded. Today, it captures just 25% of enterprise usage—half of what it held two years ago.Anthropic is the new top player in enterprise AI markets with 32%, ahead of OpenAI and Google (20%), which has shown strong growth in recent months. Meta’s Llama holds 9%, while DeepSeek, despite its high-profile launch at the beginning of the year, accounts for just 1%. Coding Market Share Claude quickly became the developer’s top choice for code generation, capturing 42% market share, more than double OpenAI’s (21%). In just one year, Claude helped transform a single-product space (GitHub Copilot) into a $1.9 billion ecosystem. The release of Claude Sonnet 3.5 in June 2024 demonstrated how breakthroughs at the model layer can move application markets, making possible entirely new categories like AI IDEs (Cursor, Windsurf), app builders (Lovable, Bolt,...

Two Neuroscientists Explain What You Probably Get Wrong About AI

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Experts reveal how AI could change our ideas about consciousness, intelligence, and what it means to be human in this new era. What happens when two of Britain’s top neuroscientists and AI researchers sit down to talk about artificial intelligence? You don’t get the usual hype about machines taking over the world. Instead, you get a crash course in how technology rewires the human brain, why cats are more impressive than chess grandmasters, and what Aristotle got wrong about reading. Steve Fleming (Professor of Cognitive Neuroscience, University College London) and Chris Summerfield (Professor of Cognitive Neuroscience, University of Oxford/Google DeepMind) aren’t Silicon Valley futurists. They’re researchers who spend their days studying how humans make decisions, reflect on themselves, and learn. That’s refreshing if you’re just done with hearing about AI hype. When they talk about AI, they don’t see it as an alien threat. They see it as another in a long line of technologies th...

How LLMs Work: Top 10 Executive-Level Questions

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Business leaders making decisions involving AI need to know the essentials of how large language models and the GenAI tools based on them operate. Get up to speed on these commonly misunderstood topics.

How Small Language Models Are Key to Scalable Agentic AI

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The rapid rise of agentic AI has reshaped how enterprises, developers, and entire industries think about automation and digital productivity. From software development workflows to enterprise process orchestration, AI agents are increasingly helping to power enterprises’ core operations, especially in areas that have previously been deemed plagued by repetitive tasks.  Most of these agents depend heavily on large language models (LLMs). LLMs are often recognized for their general reasoning, fluency, and capacity to support open-ended dialogue. But when they’re embedded inside agents, they may not always be the most efficient or economical choice. In our recent position paper, we outline our observations about the role small language models (SLMs) play in agentic AI. Titled Small Language Models are the Future of Agentic AI , we highlight the growing opportunities for integrating SLMs in place of LLMs in agentic applications, decreasing costs, and increasi...