OpenAI's new model fact-checks itself, Keith Rabois is still pushing Miami, and a diamond-making machine

Tech & Venture Capital News - September 12, 2024 Main Themes: AI Dominance & Concerns: This issue of StrictlyVC highlights the growing dominance of AI, covering OpenAI's self-fact-checking model and the White House summit on AI energy consumption. However, concerns around AI are also prominent, including cost, security vulnerabilities, and ethical considerations. Miami's Startup Scene: Keith Rabois remains optimistic about Miami's potential as a tech hub despite the departure of Andreessen Horowitz, citing significant growth in seed investments. However, data from PitchBook presents a more nuanced picture. Funding Landscape: This edition showcases a healthy mix of funding rounds across various stages and sectors, with notable activity in biotech, healthcare, and clean energy. The inclusion of "Smaller Fundings" emphasizes activity even outside the mega-rounds. Challenges & Opportunities: While the VC landscape shows signs of dynamism, challenges remain. Cohost's shutdown due to funding issues and burnout highlights the difficulties faced by startups. The "Essential Reads" section further delves into industry challenges, including OpenAI's high operating costs and cybersecurity concerns related to AI. Important Ideas/Facts: OpenAI's advancements and concerns: OpenAI's new model showcases progress in AI fact-checking, but its high operational cost ("every word the o1 preview outputs is roughly four times more expensive than for GPT-4o" - The Atlantic) raises concerns about accessibility and sustainability. Energy Consumption Debate: The White House meeting with major tech players highlights the growing concern over the energy consumption of AI development and deployment. Miami's Startup Ecosystem: While Keith Rabois paints a positive picture of Miami's startup growth, data suggests a more moderate pace of investment compared to his claims. VC Landscape: Despite challenges, funding remains robust across various sectors like biotech, healthcare, and clean energy. However, Cohost's closure serves as a reminder of the ever-present risks faced by startups. Ethical Considerations: The news about a hacker manipulating ChatGPT to provide bomb-making instructions underscores the potential dangers of AI and the urgent need for robust safety measures. Quotes: Keith Rabois on Miami's Seed Investment Growth: "11% of all seed investments in the United States have come out of Miami, which is 'up basically from zero,' and that he hopes to raise that to 20%." Sir Nick Clegg's Take on X: "[X is a] 'tiny platform' designed for 'elites' that is 'not used by the vast majority of normal people around the world.'" Sam Altman on Government Engagement: "'I personally probably have a conversation with someone in the government every few days.'" Overall: This edition of StrictlyVC provides a snapshot of the dynamism and challenges within the tech and VC sectors. While AI continues to dominate headlines, concerns around its ethical implications, cost, and security vulnerabilities are also coming to the forefront. The newsletter also sheds light on the evolving startup landscape in Miami and the ongoing funding activities across various industries.