🧙🏼‍♂️ OpenAI' next big moves

Also: Google's 3 new models

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Howdy, wizards.

OpenAI is gearing up for DevDay this fall, but not everyone is getting an invite. A top custom GPT developer and a well-known AI YouTuber received emails stating that the event is ‘currently at full capacity.’

Dario’s Picks

The most important news stories in AI this week

  1. ‎OpenAI preparing to launch a new model in the fall. The new model, codenamed Strawberry, will be a step above GPT-4o on reasoning and complex problem solving, according to The Information. Apparently it’s actually slower in “thinking” than today’s top-tier models, but the responses are better. Strawberry is currently being used to generate synthetic data to train an even more advanced model, which reportedly goes under the name Orion.

  • ‎ Why it matters‎ ‎ This is still a bit rumour mill, folks, so don’t get your hopes too high up just yet. In any case, it’s clear that OpenAI is brewing on something new and intending to launch it soon-ish. What new tasks will it revolutionise this time? How much closer does it bring us to AGI? We’ll have to wait and see.

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How Masterworks aims to beat the art market

It's no secret that contemporary art prices have outpaced the S&P 500 by 64% over the last 28 years, appreciating at a compound rate of 11.5% per year during that time (‘95-’23). But for Masterworks, an investment platform focused solely on contemporary art, keeping pace isn’t enough.

It wants to beat the market.

How are they attempting this you might ask? By buying works of art in artist markets with positive trends. It’s value investing 101. The Acquisitions and Research team is world-class, with decades of experience in the art and financial markets, powered by a proprietary database that aims to track historical artist market appreciation.

Few, if any, players in this untapped $2.1 trillion market (UHNW art/collectible wealth as of ‘23) have the qualitative and quantitative investing capabilities that Masterworks has.

So far, the Masterworks team has been successful, completing 23 exits out of over 400 offerings, each of them individually profitable. With 3 illustrative sales, Masterworks investors realized net annualized returns of 17.6%, 17.8%, and 21.5%.

  1. Claude's system prompt is now out in the open. Anthropic made Claude's system prompts public; there's one, periodically updated system prompt for each model which Claude is given at the start of each conversation. It sets context like the assistant's name and its last updated date, as well as encourages certain behaviours (e.g. reminding humans that it hallucinates occasionally and they should fact check the information it gives).

  • ‎ Why it matters‎ Great move for transparency. The real-time system prompts gives insight into why Claude responds the way it does and how it evolves over time.

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  1. Google dropped three new, experimental models. Google is releasing some experimental models to gather feedback and inform the release of new models. Here’s what they dropped:

  • An even smaller variant (8B) of Gemini 1.5 Flash; it’s intended for high volume multimodal use cases.

  • Improved versions of the Gemini 1.5 Pro model and the Gemini 1.5 Flash models. The former scores better on coding and complex tasks, while the latter scores better on some of Google’s internal benchmarks (whatever that is).

     

    If you want to test out the goods, head over to aistudio.google.com. There’s also a dedicated forum for feedback giving here.

     

    ‎ Why it matters‎ ‎ ‎ Google is shipping hard lately. It’s not easy to see how much better these new models are than the existing ones, though. However, production versions of the models are coming in the next week, likely with their benchmark scores.

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Past performance of whole art and Masterworks offerings are not indicative of future returns or artwork not yet sold. See important Regulation A disclosures at Masterworks.com/cd The content is not intended to provide legal, tax, or investment advice. Past performance is not indicative of future performance. Investing involves risk. Art sales price data is comparative only. Each painting is unique and historical data is not a direct proxy for any specific painting or investment. Data represents whole art not an investment into our offerings which includes fees and expenses. Art asset class is based on repeat-sales index of historical art market prices computed based on a value weighted-basis and focused on the Post-War & Contemporary Art category. While Masterworks believes art market comparisons to other asset classes can be useful to help potential investors discern long term trends in these asset classes, there are significant limitations to the utility of such comparative data, particularly over shorter time periods. Potential investors are cautioned not to place undue reliance on such data. “Net Annualized Return” refers to the annualized internal rate of return, or IRR, net of all fees and costs, to holders of Class A shares from the primary offering, calculated from the final closing date of such offering to the date the sale is consummated. A more detailed breakdown of the Net Annualized Return calculation for each issuer can be found in the respective Form 1-U for each exit. The 3 median returns above represent the ones closest in percentage to the median of the 12 exits with holding periods over 1 year.