Lerer Hippeau Files to Raise Ninth Fund, Expanding Its Investment Portfolio
New York-based VC firm Lerer Hippeau files to raise its ninth fund, building on its $1.2 billion assets under management and 400+ company investments.
Max Carter
Elon Musk's xAI has missed its promised launch window for Grok 3, its next major AI model, joining a growing list of flagship AI models from top companies that have failed to meet their expected release timelines. The delay has sparked concerns over the limitations of current AI scaling laws and training approaches, which are struggling to keep up with the increasing demands of AI development.
In a series of posts on X, Musk's social network, the billionaire CEO had promised that Grok 3 would arrive by the end of 2024, touting it as a "major leap forward" in AI capabilities. However, as of January 2, there is no sign of the model's imminent release, and some code on xAI's website suggests that an intermediate model, "Grok 2.5," may land first.
This is not the first time Musk has set a lofty goal and missed it, but the delay is significant given the growing trend of flagship AI models failing to meet their launch timelines. AI startup Anthropic, for instance, failed to deliver a successor to its top-of-the-line Claude 3 Opus model, scrapping all mention of the next-gen model from its developer documentation. Meanwhile, Google and OpenAI have also reportedly suffered setbacks with their flagship models in recent months.
The root cause of these delays appears to be the limits of current AI scaling laws, which are struggling to keep up with the increasing demands of AI development. In the past, companies could achieve substantial performance boosts by training models using massive amounts of computing power and larger data sets. However, the gains with each generation of model have begun to shrink, leading companies to pursue alternative techniques.
xAI's smaller team size compared to its rivals may also be a contributing factor to the delay, but the slipped launch time frame adds to the body of evidence that conventional AI training approaches are running up against a wall. As the AI industry continues to push the boundaries of what is possible, it is clear that new approaches and innovations will be needed to overcome the current scaling limits and deliver on the promise of AI.
The implications of these delays are far-reaching, with potential consequences for the development of AI-powered applications and services across industries. As the industry grapples with the challenges of scaling AI, it remains to be seen how companies will adapt and innovate to overcome these limitations and deliver on the promise of AI.
In the meantime, the delay of Grok 3 and other flagship AI models serves as a reminder that even the most ambitious projects can falter, and that the pursuit of AI innovation is a complex and ongoing challenge.
New York-based VC firm Lerer Hippeau files to raise its ninth fund, building on its $1.2 billion assets under management and 400+ company investments.
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