things that confuse me about the current AI market.
Paging Gwern or anyone else who can shed light on the current state of the AI market—I have several questions. Since the release of ChatGPT, at least 17 companies, according to the LMSYS Chatbot Arena Leaderboard, have developed AI models that outperform it. These companies include Anthropic, NexusFlow, Microsoft, Mistral, Alibaba, Hugging Face, Google, Reka AI, Cohere, Meta, 01 AI, AI21 Labs, Zhipu AI, Nvidia, DeepSeek, and xAI. Since GPT-4’s launch, 15 different companies have reportedly created AI models that are smarter than GPT-4. Among them are Reka AI, Meta, AI21 Labs, DeepSeek AI, Anthropic, Alibaba, Zhipu, Google, Cohere, Nvidia, 01 AI, NexusFlow, Mistral, and xAI. Twitter AI (xAI), which seemingly had no prior history of strong AI engineering, with a small team and limited resources, has somehow built the third smartest AI in the world, apparently on par with the very best from OpenAI. The top AI image generator, Flux AI, which is considered superior to the offerings from OpenAI and Google, has no Wikipedia page, barely any information available online, and seemingly almost no employees. The next best in class, Midjourney and Stable Diffusion, also operate with surprisingly small teams and limited resources. I have to admit, I find this all quite confusing. I expected companies with significant experience and investment in AI to be miles ahead of the competition. I also assumed that any new competitors would be well-funded and dedicated to catching up with the established leaders. Understanding these dynamics seems important because they influence the merits of things like a potential pause in AI development or the ability of China to outcompete the USA in AI. Moreover, as someone with general market interests, the valuations of some of these companies seem potentially quite off. So here are my questions: 1. Are the historically leading AI organizations—OpenAI, Anthropic, and Google—holding back their best models, making it appear as though there’