OpenAI Takes the Spotlight, U.S. Startups Face Uncertainty, and More Tech Insights

It seems like no matter what other news comes up this week, there’s only one headline that’s making waves: OpenAI.

They’ve even managed to drown out the noise of Apple's latest presentation. So, let’s start with that:

1?? OPENAI LAUNCHES A NEW MODEL

OpenAI has unveiled its latest model, presented in two versions: o1-preview and o1-mini. Users are allowed 30 and 50 queries per week, respectively. What’s new here is that the model actually "thinks" about how to deliver responses and can handle serious scientific research.

Here's a quick summary:

• The model comes in two versions: o1-preview and o1-mini.
• Available starting today for paid subscribers.
• The advanced model allows 30 queries per week, while the smaller version allows 50.
• These models "think" before generating a response. They carefully consider the question, almost mimicking the thought process of a human brain.
• It's not suitable for simple Q&A tasks—using this model for that would be like firing a bazooka at a fly. It’s designed for scientific work and excels at coding, math, physics, etc., even handling tasks at an Olympiad level. Some are comparing it to a PhD-level student.
• The model essentially doesn’t require prompt engineering. Everything happens "under the hood," and it can intuitively understand what you need. OpenAI has even released guidance on how to work with it.
• For API users, it will be expensive. Very expensive.

This is groundbreaking! While the average person may not need to use this just yet, it’s a huge leap forward for the future. Whether you’re ready to embrace it or fear it is up to you. As for me, I’m starting to think about learning how to change oil and polish metal—the rise of machines is near!

Read more about it here.

2?? NIS2 DIRECTIVE: COMPLIANCE IS NOT OPTIONAL

Remember, the NIS2 Directive will come into effect on October 17, 2024. Non-compliance could result in hefty fines and penalties. If you want to know more about NIS2 and how to comply, check out this blog post from our partners at vBoxx . It covers the basics and key measures you’ll need to meet:

NIS2 & CBW: The Basics and Measures to Comply

3?? META’S AI TRAINING WITH USER DATA

Meta has been using all available data from its social networks over the past 17 years to train its AI models. This includes all photos and text posts (including comments) from 2007 onward. Users in the EU now have the option to opt out of this data usage, but if you’re outside the EU, your permission won’t be sought.

Read more on this development.

4?? FUKUSHIMA NUCLEAR CLEANUP ROBOT BEGINS OPERATIONS

Japan is deploying a robot to start removing melted fuel from the Fukushima-1 nuclear power plant. Tokyo Electric Power Company Holdings (TEPCO) is sending the robot into the reactor to collect debris for radiation analysis.

In 2011, the plant suffered a meltdown due to an earthquake and tsunami, causing radioactive fuel in three reactors to melt. TEPCO estimates that about 880 tons of melted fuel and debris remain, complicating cleanup efforts.

The robot’s first mission will collect around 3 grams of material for analysis. Because of the high radiation levels, operations are limited to two hours daily, and workers are only allowed near the reactor for 15 minutes at a time.

Learn more here.

5?? SLACK AI TO GENERATE TRANSCRIPTS AND NOTES

Salesforce has rolled out new AI features for Slack, aimed at performing routine tasks like transcription. This will help automate note-taking and other administrative work.

Read more about it here.

6?? EU WINS ANTITRUST CASES AGAINST GOOGLE AND APPLE

The European Court has ruled against both Google and Apple in separate antitrust and tax evasion cases.

• Google was fined €2.4 billion for abusing its dominant market position.
• Apple was ordered to pay €13 billion in back taxes to Ireland, due to illegal tax breaks.

These decisions mark a significant victory for the European Commission, showing that even tech giants are not above the law.

Full story here.

7?? SAMSUNG TO CUT UP TO 30% OF OVERSEAS STAFF

Samsung Electronics has instructed its subsidiaries worldwide to reduce their sales and marketing teams by 15%, and administrative staff by up to 30%. The cuts are expected to be completed by the end of the year and will affect jobs in America, Europe, Asia, and Africa. It’s unclear how many jobs will be lost and which countries or business divisions will be hit the hardest.

More details here.

8?? 60% INCREASE IN U.S. STARTUP BANKRUPTCIES

60% Increase in U.S. Startup Bankruptcies: A Grim Outlook

The startup ecosystem in the U.S. has faced a tough reality over the past year, with bankruptcies skyrocketing by 60%. This sharp increase stems from the drying up of funding that had once flowed freely during the tech boom of 2021-2022. Many startups that raised substantial capital during this period are now running out of runway, as investors are no longer willing to pour additional funds into unprofitable or high-risk ventures.

Some of the notable casualties include:

• Tally, a fintech startup that was once valued at $855 million, backed by major investors like Andreessen Horowitz and Kleiner Perkins.
• Caffeine, a live streaming platform that had secured over $250 million from investors such as Fox Corp and Andreessen.
• Olive, a healthcare tech startup that had achieved unicorn status with a $4 billion valuation in 2021.

The collapse of these companies highlights a broader issue: startups that had relied on aggressive fundraising now face the harsh reality of scaling with limited resources. As Morgan Stanley recently pointed out in a memo to clients, the abundance of cash injected into the tech ecosystem in 2021-2022 was "abnormally high," and as a result, many startups lack the financial discipline to survive the current funding drought.

This trend underscores the importance of building sustainable, cost-efficient operations from the outset. As we've discussed in our blog, having a well-structured infrastructure from the start can save startups hundreds of thousands of dollars down the line. The ability to scale effectively without excessive burn rate is now more crucial than ever.

Learn more about cost-effective DevOps and Cloud Solutions .

This week has brought us a mix of tech breakthroughs and harsh realities. Amidst these changes, one thing remains clear—companies must focus on sustainable growth and innovative solutions to navigate the challenges ahead.

Until next time,

Fedir CEO, Gart Solutions