AI investors and CEOs note that traditional scaling methods are yielding diminishing returns for model capabilities, prompting a shift towards exploring new strategies for enhanced AI development.
OpenAI's Ilya Sutskever highlighted a universal search for novel methods to improve AI scalability, as there is a recognition that just more data and compute isn't enough.
Microsoft CEO Satya Nadella emphasized the emergence of test-time compute as a promising avenue, addressing the ceiling AI models are hitting with current scaling laws.
Investors and leaders are now coining a 'second era of scaling laws' characterized by test-time scaling, moving away from earlier assumptions about model capabilities.
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