CEO-Led AI Gets 3X the ROI

**Nathaniel Whittemore** (0:00)
Today on The AI Daily Brief, why companies where CEO owns the AI strategy are seeing three times as much ROI.
Before that, in the headlines, so much is going on including OpenAI announcing their first custom designed chip. The AI Daily Brief is a daily podcast and video about the most important news and discussions in AI.
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Man, some days, there is one dominant story that just absolutely kicks into dust all the small things that are happening around it. And then there are other days where there's no one singular story that everyone is talking about but about a million smaller stories that if we're looking for them correctly, tell us all sorts about what's actually happening in the world of AI and almost serve as tea leaves for what might happen next. Today is one of those days so these headlines might be a little bit longer than 5 minutes. First up, OpenAI has unveiled their first in-house chip. The chip is codenamed Jalapeno and was produced in collaboration with Broadcom. OpenAI referred to Jalapeno as an integrated processor and described it as the first AI accelerator in a multi-generation compute platform. In a statement, OpenAI president Greg Brockman said, The world is moving to a compute-powered economy. Jalapeno is part of our long-term full stack infrastructure strategy to make compute more abundant resulting in AI which is faster, more reliable, more affordable for people and businesses, and can be used to solve more important problems. By designing more of the stack ourselves, we can serve more intelligence with greater efficiency and keep pushing advanced AI towards broader access.
The chip is an ASIC similar to Google's TPUs, which means it's designed for the specific task of serving inference for LLMs. By contrast, NVIDIA's GPUs are much more general in their application. OpenAI said that they believe this to be the fastest development cycle ever for a high-performance ASIC, going from initial design to manufacturing to take out in nine months. In an interview with CNBC, Brockman credited the speed to AI-enhanced design, commenting, The degree to which our models have been able to accelerate, it was very surprising to us. Now, while OpenAI will begin deploying the chips as soon as they're ready, this almost certainly does not mean they'll cut down on NVIDIA orders. Brockman reaffirmed that OpenAI, quote, cannot get compute fast enough. Appearing alongside Brockman, Broadcom CEO Hawk Tan agreed, stating that compute demand from all of their customers is, quote, simply insatiable. Tan added, It's just much more than we can address. And this is not just 26, not 27 We're seeing that same and even elevated demand in 28 as well. Now, in a little bit, when we talk about Micron, we will come back to why the long duration nature of that demand is one of its most significant aspects.
One additional small update from OpenAI. At this point, any model update that isn't at the edge of the frontier is likely to fall on fairly deaf ears. But OpenAI has handed free users another upgrade with a new version of their GPT-55 Instant. For the portion of people who are on the free plan, which is the vast majority of ChatGPT users, these sort of updates to Instant can make a big difference. OpenAI claimed the model is much more fun to talk to, saying, Our most used model is now better at understanding the intent behind a question and adapting its response accordingly. It also handles complex constraints more reliably and makes shopping and local recommendations more useful and cohesive.
For those trying to understand where general consumers and free users fit, alongside the clear increase in importance of enterprise customers, OpenAI has now released upgrades to their instant model every month or two since February. Whether that's because they really care about free users as a category or because they see them as top of funnel for their bigger enterprise use, doesn't really matter. In practice, the models that the free users have access to continue to improve as well. Now, on the question of the model that we are really waiting for, we continue to experience rumor whiplash as prediction markets went from very dreary about Fable 5 to all of a sudden a massive increase in the chance that we get Fable 5 back soon. Around 2 p.m. on Wednesday, the odds of a Fable return by July 1st skyrocketed from 15% all the way up to 63%.