In the two years since ChatGPT thrust large language models (LLMs) into the mainstream, generative AI has seen a flurry of advances—take it from a publication that’s tried to keep up with them all.

But some of that progress may be slowing in coming months, according to recent reports that have prompted much discussion in the AI world over the last couple weeks. At least three of the top AI companies—OpenAI, Google, and Anthropic—may be hitting a wall of diminishing returns as they try to scale up the next iterations of flagship models, according to reports in The Information, Bloomberg, and Reuters.

For years, LLM development has hinged on the idea that the more data and computing power is shoveled into training AI systems, the smarter these models will be. But tech companies are now reportedly hitting roadblocks—they’ve nearly run out of human-authored training data, accelerating costs are yielding disappointing results, and energy crunches have set back training, according to Reuters.

All of that could have big consequences for the future of AI development, as companies may decide to home in on more specialized tasks or pursue different kinds of gains, experts told Tech Brew. Tech stocks that have soared on AI promises may adjust accordingly.

But for businesses that are still trying to harness generative AI for everyday tasks, the news doesn’t necessarily mean much, these experts said. Many companies are already finding that the massive models on the market are often bigger than they need for their purposes, according to Arun Chandrasekaran, a distinguished VP analyst with Gartner.

“I haven’t spoken to a single CIO who’s told me, ‘I want a 10 trillion parameter model rather than an 8 trillion parameter model,’” Chandrasekaran said.

Keep reading here.—PK

For a preview of how President-elect Trump will regulate the auto industry, look to his first administration, which weakened standards that require automakers to reduce vehicle tailpipe emissions.

Under President Biden, the Environmental Protection Agency unveiled what were touted as the strongest-ever standards. Now, Trump is preparing to make good on his campaign promise to “end the EV mandate,” or roll back policies aimed at decarbonizing the transportation sector, which accounts for nearly one-third of US greenhouse gas emissions.

Auto execs and their compliance teams have surely been preparing for such a scenario. But they’ll be watching closely in the coming months to see how, exactly, the Trump administration will alter key regulations like emissions standards.

“There’s a lot of war room meetings going on right now,” S&P Global Mobility analyst Michael Robinet told us. “We are still a long-range, high-capital industry; bets we make in 2022 start paying off in 2025, 2026, 2027.”

Industry leaders are used to navigating an ever-shifting regulatory landscape. But such changes would come at a time when automakers have already bet big on electrification, pouring billions of dollars into EV and battery development and production.

“The industry is not as flexible as legislators think we are,” Robinet added. “It’s a long-lead industry and you have to plan for as many outcomes as possible, within a boundary of trying to continue to make money.”

Keep reading here.—JG

It’s not often that you see industries asking to be regulated, but the prospect of a federal regulatory framework for autonomous vehicles may be welcome news to the AV sector.

The incoming Trump administration is laying the groundwork to implement federal regulations for AVs, Bloomberg recently reported. The details are still taking shape, but the Department of Transportation would reportedly lead the process. The move would likely speed the deployment of driverless vehicles on US roadways––and benefit Tesla, whose CEO, Elon Musk, has been playing an influential role in Trump’s transition back to the White House.

Win for Tesla: “This would be a huge step forward in easing US rules for self-driving cars and be a significant tailwind for Tesla’s autonomous and AI vision heading into 2025,” Wedbush Securities analysts wrote in a note. They said they expect the Trump White House to help accelerate Tesla’s AI and AV plans, thanks to Musk’s “big bet” on Trump: “Tesla and Musk are set to reap the benefits from a new friendlier regulatory era in the Beltway ahead.”

Musk has expressed opposition to the current state-by-state regulatory process for AVs in the US. “There should be a federal approval process for autonomous vehicles,” Musk said during Tesla’s Q3 earnings call.

Keep reading here.—JG