Tuesday’s Top Stories: OpenAI debuts GPT-4 turbo, WeWork files for bankruptcy, Shein targets up to $90 billion valuation
Here are the most important stories we are tracking today, Tuesday, November 7, 2023.
OpenAI Debuts GPT-4 Turbo
OpenAI has announced a major update to its GPT-4 language model called GPT-4 Turbo, which introduces key enhancements centred on context, knowledge, and pricing at its first-ever developer event called the OpenAI DevDay on Monday.
With a knowledge cutoff extended to April 2023, this new model can deliver insights and answers based on the most recent data.
It also boasts an increased input capacity than GPT-4, accommodating up to 300 pages of text (~ 96000 words), making it a powerful tool for more coherent and extensive conversations. Furthermore, it rolled out a suite of API capabilities that will let developers integrate this new model into their software applications. This includes APIs for GPT-4 Turbo with vision, which can analyze images and use them in conversations; DALL-E 3, which can generate images using AI image synthesis; and OpenAI's text-to-speech model, which has made a splash in the ChatGPT app with its realistic voices.
Importantly, OpenAI has made it cost-effective, with input tokens costing just $0.01 per 1,000 tokens (a third of the previous model), and output tokens priced at $0.03 per 1,000 tokens (half the cost). These cost reductions are set to benefit developers and companies utilizing the model extensively, making it a more accessible and affordable AI solution.
WeWork has filed for bankruptcy
Once at a lofty valuation of $47 billion, office-sharing company WeWork has spiralled into bankruptcy revealing liabilities between $10 billion and $50 billion.
WeWork's struggles began with a failed IPO in 2019, exposing an unprofitable business model, governance issues, and eccentric management under CEO Adam Neumann. Investors were spooked, and Neumann was ousted.
The company's losses mounted as it faced expensive leases, corporate clients cancelling contracts due to remote work trends, and competition from commercial property firms offering flexible leases. The pandemic further exacerbated the situation, with more clients closing their doors
Despite attempts to recover, WeWork has struggled to attain profitability with its market value plummeting by about 98.5% this year to under $50 million.
The bankruptcy filing is limited to WeWork's locations in the U.S. and Canada, and it lists assets of over $15 billion as of June 30. From the bankruptcy proceedings, the company aims to continue operations outside the U.S. and Canada, as well as its global franchisees.
Shein targets up to $90 billion valuation in US IPO
Chinese fast-fashion giant, Shein, is reportedly gearing up a U.S. initial public offering (IPO) intending to achieve a $90 billion valuation.
The proposed valuation is up from the $66 billion valuation it got in a funding round in May and close to its peak valuation of $100 billion achieved by the company in 2022. This ranked it as the world’s third most valuable startup at the time.
Meanwhile, Shein's IPO plans remain uncertain due to market volatility. It faces challenges, including copyright infringement lawsuits, environmental criticisms, and competition from emerging e-commerce platforms like Temu.
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