Name: Sam Altman's new $200 ChatGPT has a big Elon problem...
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Yesterday, OpenAI launched something huge.

A new thing that's ten times bigger than anything that's come before it.

Adverbs of manner

Unfortunately, I'm not talking about model weights or reasoning abilities, but only the price tag.

The new ChachGPT Pro Max comes in at $200 per month, and is designed for power users with unlimited access to the new O1 model.

But most importantly, OpenAI is in a life or death race to protect itself from its rivals who are becoming more and more powerful.

On the same day of the launch of ChachGPT Pro, OpenAI also got some bad news.

One of Elon's top allies, David Sachs, was named as Trump's AI crypto czar.

Sam Altman congratulated the new czar on Twitter, to which Elon replied with a sinister laugh.

It's funny, because Elon recently became the head of an imaginary government agency called Doge, and coincidentally just filed an injunction in court preventing OpenAI from going non-profit to for-profit.

In today's video, we'll look at the good, the bad, and the ugly of OpenAI's uncertain future.

It is December 7th, 2024, and you're watching The Code Report.

Before we get into the ridiculous web of Silicon Valley drama with OpenAI and the PayPal mafia, let's first talk about ChachGPT Pro.

This new $200 per month plan doesn't give you access to any new models that you don't have on the $20 per month plus plan, but it does give you unlimited access to GPT-40 and  Like currently on the plus plan, you can only send 50 messages per week to O1.

Now O1 is their quote-unquote reasoning model, and it scores really high on coding and math benchmarks.

It feels similar to other models but has the ability to prompt itself over and over again using a technique called Chain of Thought which generates reasoning tokens, and has the ability to solve more complex problems, especially when it comes to math and programming.

However, this requires a lot more computing power, and on the pro plan, you get something called Pro Mode to apparently do even better on these benchmarks.

And as an early adopter of any AI sloth they'll feed me, I can confirm that O1 Pro Mode is actually quite impressive.

It almost correctly built a Svelte 5 app, and just look at this $200 SVG unicorn.

That's impressive, but I still don't think I'll be buying it for my kids this Festivus.

But unfortunately for OpenAI, their massive lead in the AI space is diminishing faster and faster.

OpenAI is currently valued at $157 billion, yet their actual revenue is only $300 million per month, and they're currently losing billions of dollars per year on infrastructure and compute costs.

And that means they'll need to continue seeing massive growth in revenue to justify this valuation.

But they're also facing a bunch of other headwinds.

Like for one, they have no moat, models like Claude and Gemini are arguably just as good if not better in certain situations, and open models like Lama and Mistral are not far behind.

Over the last year, Altman has been trying to use the government to achieve regulatory capture and crush this competition, but now it's too late, and he's facing a big Elon problem.

You see, a few years ago, Elon Musk overpaid for a failing social media website called Twitter, so he could ban this college kid's account who made a Python app to track the location of his private jet.

Everyone laughed at him, but it turns out it was in fact a 5D chess move.

He parlayed his Twitter purchase to make another crazy bet to support Trump for president, and now that bet is paying off in a big way, because guess who just became Trump's AI czar?

Fellow African American and member of the PayPal mafia, David Sachs.

He's been one of Elon's most loyal supporters, and also has his own AI company called Glue.

But the bigger conflict here is Elon's ongoing battle with OpenAI.

He was an original co-founder who donated more than $44 million to it as a non-profit, and now that their plan is to transition to for-profit, he believes he's been defrauded out of this money.

The current rumor is that Sam Altman will get a 7% stake in OpenAI worth about $11 billion.

And that's just not fair, because Elon's currently only worth $343 billion, but he really should be worth $354 billion.

But Elon also has his own AI company XAI with Grok, and OpenAI has been telling its investors not to invest in competitors like XAI.

And Altman also got busted posting misleading tweets about Grok, and that prompted Elon to give him the nickname of Swindly Sam.

And because of this, the Dogefather recently filed an injunction to stop OpenAI from going for-profit, where it accused it and its affiliates, including Microsoft, of anti-competitive practices.

Despite the obvious threat, Altman took the high road and said, quote, Time will tell how this all plays out, but if you really want to leverage this tech, you need to learn it from the ground up.

And you can do that today for free, thanks to this video's sponsor, Brilliant.

Their platform provides interactive, hands-on lessons that demystify the complexity of deep learning.

With just a few minutes of effort each day, you can understand the math and computer science behind this seemingly magic technology.

I'd recommend starting with Python, then check out their full How Large Language Models work course if you really want to look under the hood of chat GPT.

Try everything Brilliant has to offer for free for 30 days by going to brilliant.org slash fireship, or use the QR code on screen.

 This has been The Code Report, thanks for watching, and I will see you in the next one.