OpenAI Hits Scaling Limits, Pivots Core AI Strategy

OpenAI, after hitting scaling limits with its GPT models, is pivoting its core AI strategy, shifting from building larger models to a hybrid approach combining pre-training and 'chain of thought' reasoning techniques, with potential industry-wide implications.

• OpenAI's scaling approach of building successively larger GPT models has reached its limits, forcing the company to pivot its core AI strategy.
• After struggling to make GPT-5 (codenamed 'Orion') significantly better than GPT-4, OpenAI is shifting to a hybrid approach combining traditional pre-training with 'chain of thought' reasoning techniques.
• The implications of OpenAI's pivot extend beyond the company, potentially impacting businesses involved in building ever more powerful AI models and the resources required.