OpenAI releases a new “reasoning” model

Top News

• OpenAI releases o1: OpenAI just introduced o1, a new "reasoning" model designed to answer complex questions and solve multistep problems more accurately. Alongside o1, a smaller, cheaper version called o1-mini is also being released. While o1 excels in coding and math, surpassing models like GPT-4o, it is slower, more expensive, and lacks the ability to browse the web or process images. Trained with reinforcement learning, o1 simulates human-like reasoning, moving OpenAI one step closer to its goal of creating human-like AI.

• Airpods as hearing aids: Apple announced that its AirPods Pro 2 headphones could soon be used as FDA-cleared hearing aids for adults with mild to moderate hearing loss. This feature amplifies sounds based on a user’s hearing test results, making hearing aids more accessible and affordable than traditional options. This is one of the many features Apple has released as it continues to break into the health industry. Considering most hearing aids range from $799 to $1000+, there’s a good chance the Airpod-hearing aid hybrid could make big waves in this $15 trillion market.

• Nevada to use AI for unemployment claims: Nevada is launching the first U.S. generative AI system with Google to analyze unemployment appeals and recommend benefit decisions, hoping to reduce backlogs and speed up processing times. While human referees would still review AI recommendations, many are concerned about the potential for automation bias and errors. Despite potential benefits like faster payments, experts stress the need for careful implementation and monitoring to ensure accurate and fair AI decisions.

Klarna Plans to Halve its Workforce

As AI finds more use cases (see Nevada story above), one TWiST500 company is taking this to the extreme. Klarna, the Sweden-based buy-now-pay-later unicorn, announced that the company will end its relationships with Salesforce and Workday as part of a major AI-driven overhaul. The fintech giant plans to phase out these platforms to consolidate its tech stack, enhance operational efficiency, and simplify processes. As a result, Klarna plans to reduce its workforce by 50%. The company reported a 27% year-over-year revenue increase, and after cutting half of its workforce costs, that number is only expected to increase. As Klarna prepares for an IPO, let’s hope these cost-cutting measures actually do increase efficiency.

— Erika

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