At the end of last year, we shared 10 predictions for the future of AI in 2024. As the year concludes, we’re revisiting these predictions to evaluate their accuracy and gain insights into AI's current state. So much has occurred that even an online betting market formed around our predictions. **Prediction 1: Nvidia will expand as a cloud provider. ** *Outcome: Correct. * Nvidia significantly increased investments in its DGX Cloud, aligning with major cloud providers like AWS, Google, and Microsoft, while facing future competition as these providers develop their own AI chips. **Prediction 2: Stability AI will shut down. ** *Outcome: Incorrect. * Despite initial turmoil and leadership changes, Stability AI continues to operate after restructuring, securing funding, and bringing filmmaker James Cameron onto its board. **Prediction 3: The terms 'large language model' and 'LLM' will decline in use. ** *Outcome: Incorrect. * Despite ongoing debates about the terminology, the terms remain widely used. **Prediction 4: Closed AI models will outperform open models. ** *Outcome: Correct. * With OpenAI’s release of the new reasoning model o1, closed models continue leading innovation.

Open alternatives are emerging but haven't surpassed the innovation from closed models. **Prediction 5: Companies will create Chief AI Officer roles. ** *Outcome: Correct. * Several major firms, like Eli Lilly and Accenture, have established Chief AI Officer positions, reflecting AI’s strategic importance. **Prediction 6: An alternative to transformer architecture will gain traction. ** *Outcome: Correct. * State space models (SSM) emerged as a credible alternative, seeing significant adoption and spurring new AI developments. **Prediction 7: Cloud providers' investments in AI startups will face regulatory challenges. ** *Outcome: Correct. * Investments by Microsoft, Google, and Amazon in AI startups are under regulatory scrutiny for antitrust issues. **Prediction 8: The Microsoft/OpenAI partnership will show signs of tension. ** *Outcome: Correct. * Tensions have risen as both companies diversify partnerships. Disputes over resources and leadership have also strained the alliance. **Prediction 9: AI hype will shift back to crypto. ** *Outcome: Incorrect. * Although crypto has rebounded, the momentum and excitement in AI remain high. **Prediction 10: U. S. courts will rule on AI models and copyright issues. ** *Outcome: Incorrect. * While litigation is ongoing, no significant rulings have been made yet. Stay tuned for our 2025 AI predictions, soon to be released!