Good morning. This has been a week in which things just kept happening.

I had a full newsletter written, buttoned-up and ready to roll when OpenAI finally unveiled its entry into the AI search world: SearchGPT.

We break it — and a bunch of other stuff — down for you below.

— Ian Krietzberg, Editor-in-Chief, The Deep View

In today’s newsletter:

AI for Good: NASA’s latest visualization of carbon in the atmosphere

This week, NASA published a new model that shows the movement of carbon dioxide through Earth’s atmosphere between January and March of 2020. 

The details: Because of the model’s high resolution, you can track the source of these carbon emissions (fires, power plants, cities, etc.) and watch as natural sinks absorb some of it, and the winds move the rest around. 

Why it matters: “As policymakers and as scientists, we're trying to account for where carbon comes from and how that impacts the planet,” NASA climate scientist Lesley Ott said in a statement. “You see here how everything is interconnected by these different weather patterns.”

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OpenAI unveils its big Google challenger: SearchGPT 

OpenAI on Thursday unveiled a prototype of its highly anticipated genAI search engine: SearchGPT. 

The details: The search engine, which has real-time internet access, is powered by OpenAI’s GPT-4 family of models. It will roll out slowly, only being made accessible to 10,000 test users at launch, The Verge’s Kylie Robison reported. It is a direct challenge to Google.

“SearchGPT is designed to help users connect with publishers by prominently citing and linking to them in searches,” OpenAI said. “Responses have clear, in-line, named attribution and links so users know where information is coming from and can quickly engage with even more results in a sidebar with source links.”

Some context: This entry into AI search comes as scrutiny of AI search startup Perplexity has continued to increase; both Forbes and Conde Nast have accused the company of plagiarizing their work. 

Leaked document: Runway trained video generator on thousands of YouTube videos without permission

404 Media on Thursday reported that Runway, the multi-billion-dollar AI video generation company, trained its models at least partially on thousands of scraped YouTube videos and pirated movies. 404 obtained a massive internal spreadsheet that Runway used to compile videos for training purposes. 

Brands featured on the list include Apple TV, Disney, AMC Theaters and Netflix, in addition to hundreds of others (as well as content creators including Marques Brownlee). 

A former Runway employee told 404 that there was a “company-wide effort to compile videos into spreadsheets to serve as training.” They said that the company used open-source software, including YouTubeDL, to scrape the videos, purchasing proxies to avoid getting blocked by YouTube and Google. 

This all comes into an environment of copyright chaos in the AI sector, with lawsuits from media companies, authors, musicians and artists in motion, even as OpenAI and some of its peers continue to attempt to lock down content licensing deals. 

As Ed Newton-Rex, the CEO of Fairly Trained, said: “The first AI video lawsuit, when it happens, is going to be a big one.”

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Generative AI is making workers less productive 

The big pitch behind generative AI is a simple one of productivity and efficiency in the enterprise. And while excitement over this pitch has led to the start of a wave of enterprise-level adoption, many obstacles — including reliability, trust, privacy and security — still remain. 

A recent study conducted by Upwork found that there is a stark mismatch between executives and employees when it comes to genAI. 

The details: Upwork surveyed 2,500 C-suite business leaders, employees and freelancers across the U.S., U.K., Canada and Australia. The research broadly found that, even as executives remain sold on the productivity pitch of genAI, the reality faced by their workers is the opposite. 

Employees surveyed said that they’re now spending more time reviewing AI-generated content or learning how to use genAI tools; 21% said that they are “now being asked to do more work,” and 40% “feel their company is asking too much of them when it comes to AI.”

It’s not clear what systems/products Upwork is referring to when it says “AI.”

The AI industry has hyped the ability of its products to cheaply replace large swaths of labor, enabling companies to be more productive while cutting their payroll costs. 

We can argue about the morality of that (I don’t think it’s cool), but that’s the pitch. That’s what is driving enterprise adoption. 

The problem here is multi-fold. First and foremost, genAI is enormously expensive to both train and run. And right now, genAI startups are operating at multi-billion-dollar losses in order to entice customers to hop on board for cheap — I do not believe that this can continue for much longer. 

Part B of the pitch is predicated on the assumption that these models are safe, reliable, trustworthy and secure. And while we know that they aren’t, the results of this poll add a lot of credence to the manner in which that reality is being felt. 

If this trend continues, it seems possible that customer interest in enterprise genAI might falter, which could have ramifications across startups and semiconductors alike; what happens to the ‘picks and shovels’ companies when everyone else realizes there’s no gold? 

Now, this could be temporary. I, Sequoia and Goldman Sachs could be wildly wrong and genAI could become cheap, reliable and take off. But at the end of the day, a high-cost solution to a nonexistent problem just doesn’t seem like it has the kind of legs Silicon Valley wants it to have. 

A poll before you go

Thanks for reading today’s edition of The Deep View!

We’ll see you in the next one.

Your view on AI startups trying to generate returns:

37% of you think that the most likely outcome here is the AI companies will get rid of free genAI access and hike the cost of subscriptions.

20% of you think that most companies won’t survive the bubble burst, so it doesn’t matter, anyway.

And a little less than 20% of you think advertising is the only option here.

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