Three Key Areas of Generative AI Advancements in 2023 That Brought Nvidia Substantial Profits
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OpenAI's CEO Sam Altman admitted he was surprised by the popularity of ChatGPT, the chatbot launched over a year ago as a research project. The OpenAI team once spent an entire meeting discussing whether it was worth releasing this chatbot to the public.
It has been proven that OpenAI's decision to launch ChatGPT in November 2022 became the defining moment for generative artificial intelligence, laying the foundation for the 2023 investment boom and the launch of numerous new products and services.
From financial services to biomedical research, generative AI has penetrated almost every industry in some form. According to a July survey, approximately 95% of utility and energy companies are discussing the use of generative AI algorithms.
Nvidia's performance highlights the financial impact of the generative AI boom. The chipmaker's graphics processing units (GPUs) are central to the large language models developed by OpenAI, Alphabet, Meta, and a host of well-funded startups. In the first three quarters of 2023, Nvidia's net income reached $17.5 billion, more than six times higher than the same period last year. Its stock price has surged 237% this year, far outpacing any other member of the S&P 500.
Generative AI has quickly become a buzzword in corporate earnings calls, as every company needs a story. Sometimes, that story is painful—for example, digital education company Chegg noted in May that it observed a 'significant increase' in student interest in ChatGPT, which appeared to 'impact our new customer growth rate.' The company's stock dropped 48% the day after the warning.
Perhaps no company was less prepared for the generative AI boom than OpenAI itself. In November, Altman was abruptly fired due to a dispute with the board over his push to develop new commercial products at the expense of safety. However, Altman quickly returned to leadership after employees threatened to quit and major shareholders united to reinstate him.
The public dispute included a reshuffling of OpenAI's board and brought the spotlight to the heated debate between AI skeptics and techno-optimists. While advancements in generative AI demonstrate the technology's potential to unlock various business opportunities and efficiencies, fears about the algorithms' latent power have resonated equally. Real-world harms to minority and vulnerable groups have surfaced in FTC proposals, wrongful arrests, and contaminated datasets, among other issues.
Here are some key areas of advancement in generative AI in 2023:
1. Chatbots
2. Image and Video Generation
3. Agents and Assistants
Looking Ahead