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Daily Digest #432
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Hello folks, AGI needs two essential elements: core research and funds to bring to everyone. That’s what we have today;
Mistral AI has raised €600M in Series B funding.175 General Catalyst led this funding (their thesis220)—valuing the company at $6B. Quick reminder: Mistral announced their seed funding (whopping $113M) just a year ago and they’re one of the top LLM makers in the market now. We’ve done a 🍿case study on Mistral’s journey200 before.
“LLMs are not the way to AGI.”423 There’s a large camp of AI researchers who believe this to be true. But what to do about it? François Chollet, the creator of Keras and Mike Knoop, co-founder of Zapier are launching a $1M challenge to find alternative ways to get to “general intelligence”. Hear ’em talk on Dwarkesh’s Podcast206 and the No Priors Pod133 or… you can read 🍿Our Summary12 (also below).
Microsoft is retiring the GPT Builder336 for its consumer customers. Shocker!! GPTs are useful, but Microsoft and OpenAI's commitment to them as a product has been shaky. Microsoft’s GPT Builder will still be available for enterprise customers and this current news doesn’t concern ChatGPT’s GPT store in any way.
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Elon Musk drops suit253 against OpenAI and Sam Altman.
Mira Murati fires back458 as Elon calls the OpenAI-Apple partnership a “creepy spyware”.
OpenAI partners with Oracle114 to extend its inference infrastructure.
Brazil hires OpenAI226 to cut costs of court battles.
Google announces LLMs and agents focused on personal health.358
AI is getting very popular among students and teachers340, very quickly.
American AI startups attempt to relocate China-based engineers.128
Particle raises $11M Series A150 to accelerate development of AI-powered news app.
Linq raises $6.6M133 to use AI to make research easier for financial analysts.
Cogniny raises $100M202 Series C for its AI agent workforce.
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“LLMs are not the way to AGI.” There’s a large camp of AI researchers who believe this to be true. But what to do about it? François Chollet, the creator of Keras and Mike Knopp, co-founder of Zapier are launching a challenge423 to find alternative ways to get to “general intelligence”.
What is going on here?
ARC Prize is offering $1M to improve the reasoning of AI models (not just LLMs).

What does this mean?
ARC stands for Abstraction and Reasoning Corpus. It’s a collection of tasks where you have to observe a few input-output pairs and predict the output for a similar input. We humans are pretty good at it.
Just try this example. You can easily guess the output for the Test Input.

SPOILER: Just get rid of the smaller piece. Play it here199 and guess the colour.
But what if AI systems try it? Well, the current state-of-the-art performance is 34% accuracy (humans are at 85%). So, the ARC-AGI challenge thinks this is a good challenge to test general reasoning.
It defines AGI as a system that can efficiently acquire new skills outside of its training data. And to top it all, there’s a million-dollar prize pool for beating humans at this challenge.
François and Mike talk about the challenge more on Dwarkesh Patel’s podcast206 and the No Priors Pod.133
Why should I care?
The explanation by the organizers makes sense. LLMs don’t reason, instead, they copy-paste reasoning patterns in the vast amount of data they consume while training.
The organizers also argue that the progress in AI has turned closed source and the narrative of “scale is all you need” is hurting the direction of global research. New ideas are needed and I’m up for it (except that I spent way too much time playing the puzzles last night).
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Daily Digest: Essentials for AGI
PLUS: Microsoft ditches GPTs
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