ChatGPT is beyond hype. Already 100+ million users are melting the server parks of this chatbot on steroids. Besides excitement, existential questions creep in. Every online business is wondering how this will change their competitiveness and workflow. Similar questions are posed by freelance knowledge workers and retail investors: how will this bot, which effectively ‘scales expertise’ affect our future workflow – and our investment and trading decisions? Let’s dive in.
The new iteration of ChatGPT, GPT-4, came out only roughly three months after the previous one. As the incredibly sophisticated chat bot launched on March 14 of 2023, it became available to users who opted for a paid account. Developers who wanted to have access to the API were placed on a waiting list.
The popularity of this new version became apparent quickly, as the maximum number of queries that were allowed dropped from 100 per 4 hours on launch to 25 per 3 hours a few days later. It should still be plenty for everyday use.
Some Impressive Feats Already Achieved by ChatGPT-4
Twitter went crazy tinkering with ChatGPT-4 after OpenAI, the company behind it, already showed some of its eccentric capabilities. Here’s a random list of some interesting achievements of our new bot friend (Just search for #GPT4 to find more):
- Passes exams with much higher percentile scores than GPT3.5. For example, 88% for the LSAT (law) exam, compared to 40% for GPT 3.5.
- Per the demo, it converts a hand-written sketch of a website into functioning html
- Writes documentation for the entire Solana validator codebase. This ability saves developers a lot of work. Devs are less fond of writing documentation than of writing code.
- Ongoing: found a way to make money online with a $100 budget. This project called ‘HustleGPT’ was just a fun prompt by a brand designer, but the business ChatGPT started is already valued at 25k by some investors.
- It identified the likely author of a blog post by being prompted a new post of the anonymous author.
Improvements Compared to 3.5
Like the previous version, ChatGPT-4 is surprisingly good at text summarization and writing and debugging code. It seems to have gotten better at logical reasoning, which is shown by the below prompt.
Image Understanding in Closed Beta
Another new feature, image understanding, is in ‘closed beta’ and will become available to more users sometime in the future. As of now, only a subset of users can input not just text but also images. It will answer users’ questions about an image.
ChatGPT as a ‘Deflationary Nuclear Bomb’
AI tools like ChatGPT4, when viewed through a lens of a macro-economic analyst such as Raoul Pal, are set to cause a ‘deflationary shock’ to our economies.
Why is AI ‘deflationary’? Take ChatGPT as an example. It ‘scales expertise’: it makes expertise more widely available and at much lower cost.
Take a step back to the world of goods and factories. When China joined the World Trade Organization in 2001, this event would ‘scale manufacturing’, as it unlocked hundreds of millions of new workers to the world. This…
Erik started as a freelance writer around the time Satoshi was brewing on the whitepaper.
As a crypto investor, he is class of 2020. More of a holder than a trader, but never shy to experiment with new protocols.
