Why OpenAI’s Next Release Could Be a Massive AI Breakthrough

Editor’s note: Eric Fry, here. As artificial intelligence rapidly evolves, we are on the verge of a major leap forward. While current models such as ChatGPT, Claude and others are considered advanced L1AI, future L2AI models promise to solve more complex problems. Today, Luke Lango will break down the specifics and then reveal where you can find investment opportunities around this discovery.

Take it, Luke…

Hello, reader.

Almost two years ago, OpenAI launched ChatGPT, its next-generation AI-based chatbot. And with that launch, the firm sparked an artificial intelligence frenzy that has since reshaped the global economy, the stock market, even parts of our daily lives.

Now it looks like OpenAI is getting ready to do it all again with a new iteration.

Reports have surfaced suggesting that the company plans to launch its new AI model, dubbed “Strawberry,” this fall.

But the real kicker here? It is assumed that Strawberry is capable of complex reasoning…

…Which means this encore release has the potential to be even more impactful than ChatGPT’s original debut.

Everything we know about the top-secret project suggests that Strawberry is a stunning upgrade to current AI models. Therefore, its release could propel us into a whole new era where AI is more capable than humans almost everything.

Of course, this new era will be both exciting and scary. It could make fortunes – and kill jobs. It could – perhaps permanently – divide society between the “haves” and the “have-nots”.

Either way, the release of Strawberry could be a watershed moment for the AI ​​Boom.

And to understand why, we’ll delve into the so-called “stages of AI.”

Breakdown of AI levels

According to OpenAI, there are five stages or levels of artificial intelligence: chatbots, reasoners, agents, innovators, and organizations.

At Level 1 (L1AI), AI models are capable of conversational language, but not much else. These chatbots can engage in simple dialogues, answer frequently asked questions, and perform basic tasks like setting reminders or providing weather updates. However, their responses are based on pre-programmed scripts and/or simple pattern matching.

This is the level of AI we have today. Models like ChatGPT, Claude and others can broadly be considered advanced L1AI.

At Level 2 (L2AI), models are able to reason. They go beyond simple pattern recognition and can engage in logical thinking, make inferences, understand cause-and-effect relationships, and solve problems by applying principles or rules learned during training. As such, these patterns go beyond helping us automate tasks. They help us solve hard problems.

L3AI is centered on models with sufficiently complex reasoning and contextual understanding to create fully autonomous systems. L4AI can create new things, while L5AI can run entire organizations. At L5, we would have reached the so-called Artificial General Intelligence (AGI): the end game of technology.

We are currently in the L1AI era. And Strawberry would propel us to tier 2.

L2AI: A powerful technological leap

This is a huge deal for two big reasons.

First, in the L2AI era, AI models will be capable of complex reasoning. That means they will be able to do much more than the current one can generate.

L1AI models – such as ChatGPT-4o – work well with tasks that require surface-level processing. Think text completion, basic translation, and routine response generation. However, they struggle with tasks that require deeper contextual understanding, make logical inferences in multiple steps, or integrate information from various sources.

That’s why most real-world AI applications are currently narrow in nature. Companies today use artificial intelligence to do specific things very well, such as automating call centers or drafting simple legal documents.

L2 models will be able to handle more difficult tasks that require complex problem solving. Therefore, the real-world applications of L2AI models will be much broader than what is currently possible with L1AI.

The astonishing potential – and risks – of next-generation AI

For example…

We expect L2AI to be able to advance scientific research by analyzing large data sets, identifying complex patterns, generating hypotheses, even proposing new research directions or suggesting experimental methods—things current models cannot do. This will allow the world to make more scientific discoveries faster than ever before – while creating a huge risk for research assistants.

In the legal realm, L2AI models will likely be able to analyze and compare cases to find precedents, suggest arguments, or identify potential outcomes based on legal texts and previous rulings. This could help top law firms create bulletproof cases and provide a high level of AI-based advice – while creating a huge risk for paralegals and lower-end law firms.

Or what about the medical field? L2AI models could evaluate a patient’s symptoms, medical history, and test results to make a complex diagnosis, even in cases with ambiguous or rare conditions. This can allow hospitals to expand healthcare coverage – while posing a huge risk to nurses and other healthcare professionals.

L2AI even has the potential to disrupt the way we invest in the markets. These next-generation models will likely be able to analyze economic indicators, company reports and global events to predict potential market movements and suggest personalized investment strategies – creating a huge opportunity for investment advisors using artificial intelligence, while representing time a major threat to investment advisors who do not.

If we are indeed moving towards L2AI with the release of Strawberry this fall, then we are plunging into a world of both vast opportunity and risk.

And such a world will require adept guidance to help identify opportunities and avoid risks.

The Final Word

Now here’s where things get interesting (as if they weren’t already)…

As has been widely reported, OpenAI has partnered with Apple to bring next-generation AI to the iPhone through Apple Intelligence. And with Apple investing in OpenAI, it looks like that partnership is solidified right now.

As it happens, Apple Intelligence is expected to launch this fall. So is Strawberry.

With these two tech titans strengthening their partnership with a reported investment, it looks like Apple Intelligence will be incorporating Strawberry when it launches this fall…

… It means that Strawberry could be built into every new iPhone that ships this holiday season.

By Christmas 2024, tens of millions of people around the globe (if not more) could have L2AI, capable of complex reasoning, right in the palm of their hands.

The implications of this are huge. So will the investment opportunities that arise because of it.

However, I would not recommend investing only in L2AI-related stocks. There are other opportunities that will come from a unique event scheduled to take place in about two weeks.

Soon, the current trends that reflect a recession will reverse due to a rare economic dynamic that has occurred only three times before in the last 30 years.

That’s why I’m still holding an urgent briefing Wednesday, September 11, 8:00 PM Eastern. I want to help investors prepare for – and profit from – this coming boom.

Click here to book your place.

Sincerely,

Luke Lango, Investing in hypergrowth