Recent days have seen a variety of seemingly unrelated but nevertheless massive technological and financial developments, namely OpenAI’s release of GPT-4, SVB filing for bankruptcy, and a private equity firm’s takeover of Pornhub.
On July 17th, OpenAI revealed GPT-4 (Generative Pre-trained Transformer 4), the fourth and newest incarnation of their revolutionary artificial intelligence language model. GPT-4 is a breakthrough AI tool that promises to revolutionize natural language generation (NLG) – the ability of machines to generate human-like natural language text. OpenAI has said that GPT-4 is the most powerful AI language system ever created, and is expected to revolutionize the fields of natural language processing and natural language understanding.
On July 21st, Silicon Valley Bank (SVB) filed for bankruptcy. The company, which has provided financial services to the tech industry since 1983, had been struggling with mounting losses resulting from the effects of the COVID-19 pandemic and was forced to take drastic action to securethe bank’s future.
Most recently, and perhaps unexpectedly, a private equity firm announced an agreement on July 27th to acquire adult entertainment platform Pornhub. The site, owned by Luxembourg-based MindGeek, will be purchased for an undisclosed sum by Feros Investment Group, a Malta-based venture capital firm. This bold move marks the first time a major private equity firm has zeroed in on the adult entertainment industry.
At a glance, it may appear that OpenAI’s GPT-4, SVB’s bankruptcy, and the Feros Investment Group’s acquisition of Pornhub are three separate, unrelated events. On closer inspection, however, it is possible to draw connections between the three developments.
OpenAI’s release of GPT-4 represents a leap forward in the field of AI research and development. This technology is certain to have wide-reaching impacts, such as the replacement of low-skilled human labor with AI solutions. SVB filing for bankruptcy, meanwhile, is an indication of the kind of severe, long-term disruption caused by the pandemic. Finally, the Feros Investment Group’s purchase of Pornhub stands as a notable example of venture capitalists recognizing opportunity and acting on it.
In sum, these three events provide a glimpse of the future of technology and finance. OpenAI’s GPT-4 is a step forward in making machines smarter; SVB’s bankruptcy reveals the potential long-term economic damage of the pandemic; and the Feros investment in Pornhub underscores the trend of venture capitalists increasing their involvement in industries typically thought of as taboo.