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Illustration: Lazaro Gamio/Axios

The cripplingly high computational costs of top-notch AI research increasingly means that only a handful of big companies are able to do top-flight AI research.

Why it matters: AI will do more than any other technology to shape our future. If only the Googles and the Microsofts of the world have the resources needed to move the field forward, it will solidify their power — and possibly strangle innovation.

By the numbers: It likely cost the Microsoft-funded research group OpenAI more than $10 million to train GPT-3, its cutting-edge, new natural language processing algorithm, according to the annual State of AI Report published Thursday.

  • That's because these models are created by essentially throwing ever-increasing amounts of data at the thorny problems of AI. Processing all of that data takes lots of computational power — and compute costs money.

Of note: OpenAI was originally founded as a nonprofit with the purpose of pursuing AI research for the benefit of all humanity.

  • But last year it set up a for-profit arm and accepted a billion-dollar investment from Microsoft.
  • Last month Microsoft announced it would be exclusively licensing GPT-3.

Context: In the future the costs of developing these massive models may become prohibitive even for the richest tech companies.

  • The report found that without major research breakthroughs, reducing the error rate for ImageNet — a massive database used for visual recognition research — from 11.5% to 1% could cost $100 billion billion. (Yes that's two "billions.")

Go deeper

Bryan Walsh, author of Future
Nov 19, 2020 - Technology

Survey: Executives are prioritizing AI skills

Illustration: Annelise Capossela/Axios

Executives and senior managers say they will prioritize hiring candidates who have skills in automation and AI, according to a survey first shared with Axios.

Why it matters: Automation hasn't yet transformed the business world, in part because companies don't yet know how to harness these new technologies. If that's going to happen, they'll need workers who know how to use AI.

Bryan Walsh, author of Future
Nov 18, 2020 - Technology

The robo-job apocalypse is being delayed

Illustration: Eniola Odetunde/Axios

A sprawling new report makes the case that automation and AI won't lead to widespread job destruction anytime soon.

Why it matters: Technological advances in AI and automation will have an enormous impact on the workforce, but it may take decades for those effects to be fully felt. That gives business leaders and politicians a last chance to change labor and education policies that have left too many workers locked in low-quality, low-paying jobs.

6 hours ago - Politics & Policy

Kellyanne Conway's parting power pointers

Kellyanne Conway addresses the 2020 Republican National Convention. Photo: Nicholas Kamm/AFP via Getty Images

Kellyanne Conway has seen power exercised as a pollster, campaign manager and senior counselor to President Trump. Now that his term in office has concluded, she shared her thoughts with Axios.

Why it matters: If there's a currency in this town, it's power, so we've asked several former Washington power brokers to share their best advice as a new administration and new Congress settle in.