Happy Friday!

In Today’s Email:

• GPT updates 💻

• Microsoft predicts AI revenue 💵

• Southeast Asia’s new AI guidelines 👨‍⚖️

GPT updates 💻

OpenAI recently released new features for ChatGPT models.

The update is designed with developers in mind, the most prominent feature being new function-calling capabilities. Function calling allows developers to connect external tools and APIs with GPT’s capabilities more reliably. The models have been calibrated to detect when a function needs to be labeled and to respond with the appropriate function signature.

New models were also introduced in the update. GPT-4-0613 features an improved model with function calling. GPT-4-32k-0613 includes the same improvements with extended context length for better comprehension of larger texts. GPT-3.5-turbo-0613 features the same function calling as GPT-4 and more reliable steerability using the system message.

Lower pricing was also introduced. Developers can use the most popular model, GPT-3.5-turbo, for just $0.0015 per 1k input tokens and $0.002 per 1k output tokens, which is roughly 700 pages per dollar. GPT-3.5-turbo-16k boasts 4 times the context length of GPT-3.5-turbo at twice the price: $0.003 per 1k input tokens and $0.004 per 1k output tokens.

With each update, OpenAI continues to make its systems more efficient and affordable for consumers and developers.

Read more about the update here.

Microsoft predicts AI revenue 💵

Microsoft shares soared on Thursday thanks to growth prospects in AI.

JPMorgan analysts raised their price target on Microsoft’s stock on Wednesday after reviewing the software giant's growth prospects in AI. Microsoft has been no stranger to AI, especially after Microsoft-backed OpenAI released ChatGPT last November.

The rapid rise of ChatGPT and hefty investment into OpenAI is the factor driving Microsoft’s future in AI. The company has already incorporated OpenAI into its Windows operating system and Bing search engine. Cloud computing is also expected to see major growth from AI. Microsoft finance chief Amy Hood recently talked about the growth of Azure cloud, saying that “the next generation AI business will be the fastest-growing $10 billion business in our history.”

Kevin Scott, chief of technology at Microsoft weighed in on Hood’s prediction. “There is all of the people who want to come use our infrastructure, whether they’re training their own models, whether they are running an open-source model they’ve got or whether they are making API calls into one of the big frontier models that we’ve built with OpenAI.”

Microsoft’s stock has already rallied 46% this year, recouping all its losses from 2022.

Southeast Asia’s new AI guidelines 👨‍⚖️

Southeast Asian countries are drafting governance and ethics guidelines for AI.

Ministers from the Association of Southeast Asian Nations (ASEAN) have agreed to create a guide on AI governance and ethics for the region in order to balance the economic risks and benefits of the new technology. One official told Reuters, “The drafting is ongoing and it could be completed towards the end of the year before it is endorsed by ASEAN members.”

A spokesman for Singapore’s Ministry for Communications and Information said that the country would collaborate with other ASEAN states “to develop an ‘ASEAN Guide on AI Governance and Ethics’ that will serve as a practical and implementable step to support the trusted deployment of responsible and innovative AI technologies in ASEAN.”

The 10 member countries of ASEAN are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The region accounts for roughly 668 million people. ASEAN’s move to set guidelines for AI is similar to their counterparts in the U.S. and Europe who are expected to release a draft of a voluntary AI code of conduct in the coming weeks.

What are your thoughts on AI regulation?

That’s it for today, we’ll see you back here tomorrow!