{"id":238830,"date":"2024-07-02T12:15:28","date_gmt":"2024-07-02T12:15:28","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/07\/02\/citadel-ken-griffin-is-hitting-pause-on-the-ai-hype\/"},"modified":"2025-06-25T17:15:41","modified_gmt":"2025-06-25T17:15:41","slug":"citadel-ken-griffin-is-hitting-pause-on-the-ai-hype","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/07\/02\/citadel-ken-griffin-is-hitting-pause-on-the-ai-hype\/","title":{"rendered":"Citadel Ken Griffin is hitting pause on the AI hype"},"content":{"rendered":"<p> [ad_1]<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/07\/GettyImages-2151203681-e1719920875602.jpg?w=2048\" \/><\/p>\n<p>It\u2019s been more than 18 months since ChatGPT\u2019s debut sparked a rally that propelled AI chipmaker <a href=\"https:\/\/fortune.com\/company\/nvidia\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/nvidia\/\" class=\"sc-80b85506-0 pUpMT\" rel=\"noopener\">Nvidia<\/a> to a $3 trillion market cap in June, yet billionaire investor Ken Griffin isn\u2019t buying the hype around the technology\u2014not yet at least.<\/p>\n<div>\n<p>Speaking to Citadel\u2019s new class of interns at New York, the founder and CEO acknowledged artificial intelligence reached an \u201cinflection point\u201d with the rollout of large language models, but disputed that LLM-based tools like OpenAI\u2019s own ChatGPT would over the next three years become more valuable than the top talent he\u2019s recruiting straight out of universities.<\/p>\n<p>\u201cFor a number of reasons, I am not convinced that these models will achieve that type of breakthrough in the near future,\u201d Griffin said on Monday, according to comments\u00a0<a href=\"https:\/\/www.cnbc.com\/2024\/07\/01\/ken-griffin-says-hes-not-convinced-ai-will-replace-human-jobs-in-near-future.html\" target=\"_blank\" aria-label=\"Go to https:\/\/www.cnbc.com\/2024\/07\/01\/ken-griffin-says-hes-not-convinced-ai-will-replace-human-jobs-in-near-future.html\" rel=\"noopener\" class=\"sc-80b85506-0 pUpMT\">reported<\/a>\u00a0by CNBC.<\/p>\n<p>As evidence, the Citadel boss cited self-driving cars, which struggle when confronted with so-called edge cases that fall beyond the boundaries of statistically common traffic occurrences.\u00a0<\/p>\n<p>Most autonomous vehicles are trained by feeding them images labelled with data describing the environment around them: that way a computer can recognize for example whether what\u2019s crossing the street is a small child or just a rubber ball. But there are often instances when a self-driving car may find itself confronted with a situation it has never seen before, and it behaves incorrectly since it lacks human intuition.\u00a0<\/p>\n<p>\u201cMachine learning models do much better where there\u2019s consistency,\u201d Griffin said, justifying his skepticism.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<p><iframe title=\"A Conversation with Mira Murati, CTO of OpenAI (Full Interview)\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/Ru76kAEmVfU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<\/figure>\n<p>The Citadel founder has tended to focus in the past on AI as a tool for enhancing human productivity rather than replacing it. Last month he told participants at the Milken Global Conference that while it has sparked huge investments in data center infrastructure and semiconductor chips like Nvidia\u2019s for AI training, AI\u2019s impact on business remains small.<\/p>\n<p>That\u2019s in part because executives haven\u2019t understood how to most effectively harness the power of AI\u2014they just know they need to tell investors like Griffin they do.<\/p>\n<p>\u201cI\u2019ll ask the question \u2018so tell me how you use AI at your firm today\u2019, and you get these big smiles and you get these really enthusiastic answers,\u201d he\u00a0<a href=\"https:\/\/www.youtube.com\/watch?v=C-DJ2KRAu9s&amp;t=348s\" target=\"_blank\" aria-label=\"Go to https:\/\/www.youtube.com\/watch?v=C-DJ2KRAu9s&amp;t=348s\" rel=\"noopener\" class=\"sc-80b85506-0 pUpMT\">said<\/a>, \u201cthat have almost nothing to do with AI.\u201d <\/p>\n<h2 class=\"wp-block-heading\">\u2018Ph.D.-level intelligence\u2019<\/h2>\n<p>While having top human talent has allowed Citadel to run one of the most successful hedge funds on Wall Street until now, OpenAI chief technology officer\u00a0<a href=\"https:\/\/fortune.com\/longform\/openai-mira-murati-chatgpt-dalle-3-generative-ai-agi\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/longform\/openai-mira-murati-chatgpt-dalle-3-generative-ai-agi\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" class=\"sc-80b85506-0 pUpMT\" rel=\"noopener\">Mira Murati<\/a>\u00a0believes that her team will have an important say when it comes to whether knowledge economy employees like Griffin\u2019s Citadel staff can still\u00a0<a href=\"https:\/\/fortune.com\/2024\/06\/24\/ai-creative-industry-jobs-losses-openai-cto-mira-murati-skill-displacement\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/06\/24\/ai-creative-industry-jobs-losses-openai-cto-mira-murati-skill-displacement\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" class=\"sc-80b85506-0 pUpMT\" rel=\"noopener\">outcompete her GenAI tools<\/a>\u00a0in the future.<\/p>\n<p>Speaking two weeks ago to students at her alma mater, Dartmouth College, Murati said OpenAI\u2019s LLM, a type of neural network known as a Generative Pre-trained Transformer, has rapidly matured over the space of a few short years.\u00a0<\/p>\n<p>Whereas GPT-3 was in her words still comparable to a toddler in terms of intelligence when it debuted in 2020, the current GPT-4 released in\u00a0<a href=\"https:\/\/fortune.com\/2023\/03\/14\/openai-releases-gpt-4-improved-performance-still-limitations\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2023\/03\/14\/openai-releases-gpt-4-improved-performance-still-limitations\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" class=\"sc-80b85506-0 pUpMT\" rel=\"noopener\">March 2023<\/a>\u00a0is already at an advanced high school level.<\/p>\n<p>\u201cIn the next couple of years, we\u2019re looking at Ph.D.-level intelligence for specific tasks,\u201d she\u00a0<a href=\"https:\/\/www.youtube.com\/watch?v=Ru76kAEmVfU&amp;t=820s\" target=\"_blank\" aria-label=\"Go to https:\/\/www.youtube.com\/watch?v=Ru76kAEmVfU&amp;t=820s\" rel=\"noopener\" class=\"sc-80b85506-0 pUpMT\">said<\/a>.\u00a0<\/p>\n<p>Given GPT-4 already passed qualifying exams for practicing numerous professions,\u00a0<a href=\"https:\/\/law.stanford.edu\/2023\/04\/19\/gpt-4-passes-the-bar-exam-what-that-means-for-artificial-intelligence-tools-in-the-legal-industry\/\" target=\"_blank\" aria-label=\"Go to https:\/\/law.stanford.edu\/2023\/04\/19\/gpt-4-passes-the-bar-exam-what-that-means-for-artificial-intelligence-tools-in-the-legal-industry\/\" rel=\"noopener\" class=\"sc-80b85506-0 pUpMT\">including the bar examination<\/a>, one might argue Murati is <a href=\"https:\/\/fortune.com\/2024\/03\/19\/sam-altman-chatgpt-4-kind-of-sucks\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/03\/19\/sam-altman-chatgpt-4-kind-of-sucks\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" class=\"sc-80b85506-0 pUpMT\" rel=\"noopener\">downplaying<\/a>\u00a0the power of her technology. It remains to be seen whether Griffin will change his mind about the value and cost of human workers when Murati rolls out GPT-5.<\/p>\n<\/div>\n<div data-cy=\"subscriptionPlea\">Subscribe to the Fortune Next to Lead newsletter to get weekly strategies on how to make it to the corner office. <a href=\"https:\/\/fortune.com\/newsletters\/next-to-lead?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=next_to_lead\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/newsletters\/next-to-lead?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=next_to_lead\" class=\"sc-80b85506-0 pUpMT\" rel=\"noopener\">Sign up for free<\/a>.<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/07\/02\/ken-griffin-citadel-generative-ai-hype-openai-mira-murati-nvidia-jobs\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] It\u2019s been more than 18 months since ChatGPT\u2019s debut sparked a rally that propelled AI chipmaker Nvidia to a $3 trillion market cap in<\/p>\n","protected":false},"author":1,"featured_media":238831,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/238830"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=238830"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/238830\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/238831"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=238830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=238830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=238830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}