OpenAIs NEW Statement Has Everyone Concerned....

So there has been a piece of information from OpenAI that has left some people, I guess you could say a little bit concerned. You can see here, it says the OpenAI CEO Sarah Freya says that the company is leaving the door open to a $2,000 a month subscription to its AI product, which could serve as a replacement to hiring humans due to its PhD level intelligence. Now, I don't think this is something that is surprising when we're looking at why humans are concerned about this. I know that many people have been concerned with the rise in certain technologies due to the fact that we all know the large reason why these AI companies making AI is so that eventually they can of course replace humans at some time later down the line. Now she actually talks about the fact that, you know, this is something that they're probably going to be doing as they are discussing it. And she states that, you know, if it's helping me move about the world with literally a PhD level assistant for any anything that I'm doing, then there are certainly cases where that would make all the sense in the world. And the ChatGPT maker offers, you know, currently a $20 a month subscription tier as well as the newly launched $200 monthly option for access to its new powerful models. And this is the model that allows you to get access to currently the smartest AI on the world. Now, I do have access to 01 Pro mode that does cost, as you guys can see right here, $200 per month. Now, will I say is this as useful as ChatGPT? I don't think so, but I think most people are missing the real use case for this model. I think the main use case that most people don't currently have, including myself, is that you're not doing some competition level math, you're not doing competition level coding, and you're not trying to, you know, do PhD level research. So that is why I think this kind of model is one that the general public aren't going to need. But, but when I'm actually talking about $20 a month versus $200 a month, the reason I'm talking about $200 a month being a model slash price that you don't really need is because when we actually do take a look at the fact that this one is probably going to be $2,000 a month, that is going to replace individuals at a company, a lot of people can't fathom why that would be so expensive. And I think the main thing to understand here is that with this model being $2,000,000 a month, that is going to be something that offers tremendous value compared to the average person in that place. So $2,000 a month seems pretty incredible. But we actually take a look at what these companies are paying in terms of their salaries and in terms of their, you know, employees, in terms of their business expenses. This is going to be something that I guess you could say could save them a lot of money. Now, the main thing as well, that I think people are not understanding as well about this, you can see here this, they actually talk about the fact that they're going to be getting a lot more value from this. And one of the things that they do state, and I'm going to mention something in a moment, but they do say that, you know, in the enterprise setting, which is where you have those big businesses, whether it be lawyers who turn to AI to have a paralegal at their fingertips or academics who rely on it for a research breakthrough, that is going to be something that people have in terms of the main value for this. Now, I think, yes, these chatbots are really good, but, but I think the main value here is going to be this. Like, this is going to be where they can actually start charging $2,000 a month. So what they're going to be able to do so that they can actually start charging $2,000 a month, and this is going to be fairly soon, is that they're going to be nearing the launch of an AI agent that can use a computer to perform complicated tasks like booking travel or conducting research. And such tools could be more economically valuable to companies, in part by automating roles. So this is something that OpenAI are going to be doing and this is something that they actually did a recent demo of. I don't actually have footage, but in Paris. So in here at Paris, you could see at this private conference, OpenAI, we're actually showcasing the demo for their OpenAI agent, which is, you know, the O1 agent and a real time conversational agent. So this is going to be something that they're going to be pitching to these companies because always, always, always companies are trying to save money. And if they can save money with, let's say, $2,000 a month, that is going to be something that clearly they view, okay, it's an expense, but it saves us paying someone $5,000 a month, holiday sick pay and all of those employee benefits. So this is something that they showcased that was, you know, being able to, you know, do things autonomously. And that is the largest use case. Well, the end use case for these companies. Now, OpenAI isn't the only company that is, you know, automating employee roles recently. I'm not sure if you guys remember this company. If you guys do remember Devin, the first AI software engineer, this is essentially your AI employee, your junior engineer that is able to do a large variety of tasks for you. Just, just huge, huge plethora of tasks that you can do. You can see right here, it's able to plan step by step and is able to execute on these things as you would. So this is going to be something that of course, you know, is going to be part of the future stack of AI companies because they want to make sure that their technology is, is used in many different companies across the world so that they can of course, take some of that revenue for themselves. Now the reason I'm showing you guys the future of this is because what Devon is doing, slash Cognition Labs, what they are doing with Devin is quite similar to what OpenAI are doing with their $200 a month, $2,000 a month subscription you can see here. Devin, recently I was wondering, okay, how much would something like this cost? And, and when you actually sign up for Devon, as you're coming into the, you know, page, the welcoming page, the onboarding process, you essentially come to this page which actually shows you that the cost of this is actually 500amonth. Now most people were surprised by the fact that this was costing $500 a month, and that does include myself. I was one of the people that was like, whoa, why is this $500 a month? What is going on here? But when we actually take a look at what they are doing with Devon, we actually can reverse engineer this and think, wait a minute, this price actually makes sense. Which is how you guys can understand how OpenAI is going to be able to charge 200amonth. 2,000. So Devon, they're charging $500 a month, okay, which is, you know, to the average person, pretty expensive. But with this, their goal is to replace the average software engineer. And the average software engineer is, you know, constantly being paid six figures, which is around $8,000,000 per month. Okay, around 6,000 to $8,000 per month, sometimes up to, you know, $20,000 per month. So if you can automate away some of that salary, that is around, you know, $10,000 a month. You have to think about it. $500 a month is going to be a no brainer. And considering the fact that in the future it's quite likely that this 500amonth, you know, investment is Going to be worth a lot more considering software updates, considering these models are going to get better, the going to get more agentic, they're going to, you know, have less errors. This is going to be something that more companies are going to on board. Now that's not the only company that is, you know, doing this hiring thing. There's another company that has stopped hiring a year ago because the AI can already do all of the jobs. Now this is Klarna and they're pretty right about this because their company is working with voice agents. So this is going to be something that they really have a nice advantage on.

Everyone of the opinion that AI can already do all of the jobs that we as humans do. It's just a question of how we apply it and use it. We stopped hiring about a year ago, so we were 4,500, now we're 3,500. We have a natural attrition as every tech company. So people stay about five years, so 20% leave every year. And by not hiring we're simply shrinking. Right. What we've said to our employees though is what's going to happen is the total salary cost of Klarna is going to shrink, but part of the gain of that is going to to be seen in your paycheck. So we're going to give some of the improvements that the efficiency that AI provides by increasing the pace at which the salaries of our employees increases. And that's because of that message being very consistent for myself and management for the last year. People in thank are just rallying to deploy as much efficiency AI as they can because it just means it has direct implications on their equity and their cash compensation for working.

So now I wanted to talk to you guys also about the next frontier in terms of where things are going. This is a freeze frame of a clip where Sam Altman actually talks about how this kind of thing isn't just going to be for these companies. Of course, if you are an entrepreneur, if you are a founder, if you're someone looking to start your own business in the future, we're going to have these AI agents that are going to be able to do quite a lot of different tasks. And that means that there's going to be a lot of economic value that you could potentially pull from that agent. Now Sam Altman says here in this clip, in, in this interview that it will be possible for you, the average person, to be able to orchestrate these agents to perform tasks on your behalf and thus allow you to potentially run your own $1 billion company. And of course, Sam Altman reiterated this on his interview in yc, where he spoke about the fact that, yes, people are going to just be building incredible companies with literally just a few thousand GPUs.

You will have companies that make billions of dollars per year and have, like, less than 100 employees, maybe 50, maybe 20 employees, maybe one. It does seem like that. I don't know what to make of that other than it's a great time to be a startup founder. Yeah. But it does feel like that's happening to me.

Yeah.

You know, it's like one person plus 10,000 GPUs could happen.

Yeah. Now I want to show you guys what I think is the next frontier. This is a snippet from Magic Labs, and genuinely, guys, I think this is the next frontier in terms of automation. Most people are talking about, yes, AI agents going to be able to do your workloads. But I think when we have factories full of robots that are orchestrating many different things around many different companies, I think things are going to move really quickly. Now, I do think it's going to be really fascinating because on one side you say, okay, now they can replace all the humans at that company. But at the same time, some businesses that weren't possibly feasible before are now going to become feasible. If you can Automate, let's say, 1,000 humans by paying $15,000 for one robot that you can pay $1,000 a month in terms of maintenance for, and you could scale any kind of physical labor company, it's going to be really interesting to see that kind of frontier and how employees are managed in that area. Let me know what you guys think about this video. I'd love to see you in the next one. And until next time, hopefully you had a wonderful day.