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Google had been working on a big LLM but they wanted to resolve all the safety concerns before releasing it. It was only when OpenAI went "YOLO! Check this out!" that Google then internally said, "Damn the safety concerns, full speed ahead!" and now we find ourselves in this breakneck race in which all safety concerns have been sidelined.
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Scaling seemed like the important idea that everyone was chasing. OpenAI used to be a lot more safety minded because it was in their non profit charter, now they’ve gone for-profit and weaponized their tech for the USA military. Pretty wild turnaround. Saying OpenAI was cavalier with safety in the early days is inaccurate. It was a skill issue. Remember Bard? Google was slow.
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What OpenAI did was train increasingly large transformer model instances. which was sensible because transformers allowed for a scaling up of training compared to earlier models. The resulting instances (GPT) showed good understanding of natural language syntax and generation of mostly sensible text (which was unprecedented at the time) so they made ChatGPT by adding new stages of supervised fine tuning and RLHF to their pretrained text-prediction models.
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There were plenty of models the size of gpt3 in industry.

The core insight necessary for chatgpt was not scaling (that was already widely accepted): the insight was that instead of finetuning for each individual task, you can finetune once for the meta-task of instruction following, which brings a problem specification directly into the data stream.

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On the one hand, not publishing any new models for an architecture in almost a year seems like forever given how things are moving right now. On the other hand I don't think that's very conclusive on whether they've given up on it or have other higher priority research directions to go into first either
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