OpenAI Unveils 'O1' Model: A Step Closer To Human-Like AI, But Not Without Flaws

OpenAI, the AI research lab, has launched a new model, ‘o1’, which is the first in a series of “reasoning” models. This model can answer complex questions faster than a human. The company has also introduced a smaller, more affordable version, ‘o1-mini’.

What Happened: The o1 model is a significant step towards OpenAI’s goal of achieving human-like artificial intelligence. It outperforms previous models in writing code and solving multi-step problems. However, it is more expensive and slower to use than the GPT-4o model, reported The Verge.

OpenAI is calling the release of o1 a “preview” to highlight its early stage. ChatGPT Plus and Team users can access both o1-preview and o1-mini starting Thursday, while Enterprise and Edu users will get access early next week. The company plans to offer o1-mini access to all free ChatGPT users but has not set a release date yet.

Despite its advanced capabilities, o1 has limitations. It is not as proficient as GPT-4o in areas such as factual knowledge about the world, browsing the web, or processing files and images, The Verge reports. However, OpenAI believes it represents a new class of capabilities and has named it o1 to indicate “resetting the counter back to 1.”

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OpenAI’s research lead, Jerry Tworek, explained that the training behind o1 is fundamentally different from its predecessors. The model has been trained to solve problems on its own using reinforcement learning, a technique that teaches the system through rewards and penalties. This new training methodology is expected to make the model more accurate.

Despite its limitations, the o1 model has shown remarkable performance in certain areas. The Verge reports that it has outperformed GPT-4o in solving complex problems, such as coding and math, and has been able to explain its reasoning, according to OpenAI.

OpenAI Attracts Major Investors: Meanwhile, the United Arab Emirates’ state-supported firm, MGX, is reportedly in talks to invest in OpenAI, which could potentially be part of a multibillion-dollar funding round, The Wall Street Journal reported on Thursday.

Established by the UAE earlier this year, MGX is primarily focused on investing in artificial intelligence projects. The exact amount of the potential investment in OpenAI is yet to be disclosed. However, if the investment is finalized, it would bring the Middle Eastern nation closer to one of the world’s leading AI companies, according to WSJ.

OpenAI is reportedly in discussions to raise $6.5 billion in equity financing, potentially bringing its valuation to $150 billion. This valuation is expected to be led by Thrive Capital and does not factor in the new funds being raised.

OpenAI’s CEO, Sam Altman, has been seeking the U.S. government’s support for a project that aims to form a global coalition of investors to fund the costly physical infrastructure required for rapid AI development. This AI infrastructure project is estimated to cost “tens of billions of dollars.”

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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