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AGI and jumping to the New Inference Market S-Curve


The Gist

  • Evolving rapidly. AI continues to evolve at a rapid pace toward Artificial General Intelligence (AGI) but we may need a new way to determine how to measure we arrived.
  • Not there yet. Achieving AGI will require strong capabilities in reasoning and logic that go beyond the current capabilities of LLMs.
  • Expect a slowdown. The exponential growth in large language model parameters and GPU compute power will start to slow, as training data sizes and hardware improvements hit practical limits.
  • Highly efficient predictions. New entrants in the inference space will enable highly efficient predictions using commodity devices at the edge, enabling a host of new, low-latency use cases.
  • New focus. Inference will become the new wave of focus as AI applications move from experimentation to production.

Artificial general intelligence (AGI) has been the Holy Grail of AI for many decades. AGI is an application of “strong AI” that is defined as AI that can perform as well or better than humans on a wide range of cognitive tasks. There is much debate over when artificial general intelligence may be fully realized, especially with the current evolution of large language models (LLMs). For many people, AGI is something out of a science fiction movie that remains mostly theoretical. Others believe we have already reached AGI with the latest releases of Chat-GPT4o and Gemini Advanced.

In Search of Artificial General Intelligence

Historically, we have used the Turing test as the measurement to determine if a system has reached artificial general intelligence. Created by Alan Turing in 1950 and originally called the “Imitation Game,” the test is largely based on three participants, an interrogator whose asks questions to the machine and human, the machine or system and the human who answers the question alongside the machine for comparison.

The criticism of the test is that it doesn’t measure intelligence or any other human qualities. The foundational assumption that an interrogator can determine if a machine is “thinking” by comparing its behavior with human behavior has a lot of subjectivity and is not necessarily deterministic.

There is also lack of consensus on whether the modern LLMs have actually achieved AGI. In June 2022, Google claimed LaMDA had passed the test, but critics quickly dismissed this as an advancement in “fooling” people you have intelligence rather than advancing toward AGI. The reality is that the test has outlived its usefulness.

Ray Kurzweil, a technology futurist, has spent much of his career making predictions on when we will reach AGI. In his recent talk at SXSW, he said he is sticking to his original prediction in 1999 that AI will match/surpass human intelligence by 2029. 

But how will we know?

Related Article: The Quest for Achieving Artificial General Intelligence

A New Way to Think About AGI

Horizontal AI products like ChatGPT, Gemini, Midjourney, Dall-E have given millions of users exposure to the power of AI. To many, these AI platforms seem very smart as they can generate answers, compose songs and write code in seconds.

However, there is a big difference between AI and AGI. These current AI platforms are essentially highly efficient prediction machines because they have been trained on a large corpus of data. However, that does not enable creativity, logical reasoning and sensory perception.

As we move closer to artificial general intelligence, we need an accepted definition of AGI and a framework that truly measures these critical aspects of intelligence such as reasoning, creativity and sentience.

One approach is to consider artificial general intelligence as an end-to end “intelligence supply chain” encompassing all the capabilities needed to achieve AGI.

We can group the critical components needed for AGI into four major categories as follows:

  1. Observations and Learning – the ability to observe an environment and understand actions to gain context. The training or imparting of knowledge into the system to understand past behavior.
  2. Pattern Matching and Predictions – the ability to match what is happening currently with what has happened in the past and use that to make predictions.
  3. Abstractions and Reasoning – the ability to provide parameters and constraints in the decision-making process. Human decision-making frequently considers interactions across multiple domains to understand the interactions and connections.
  4. Creativity and Emotions – the ability to generate new ideas that are far removed from what has happened before.

Today’s AI systems are mostly excelling at 1 and 2. For artificial general intelligence to be attained, we will need systems that can accomplish 3 and 4.

Achieving AGI will require further advances in algorithms, computing and data than what powers the models of today. Mimicking complex human behavior such as creativity, perceptions, learning and memory will require embodied cognition or learning from a multitude of senses or inputs. We also need systems and infrastructure that go beyond training.

The image shows a set of glass chess pieces arranged on a chessboard, reflecting on the board's surface. In the center stands a tall king, flanked by a queen, bishops, knights, and rooks, all made of clear glass. The pieces are illuminated, casting soft reflections and refractions of light on the glossy surface, highlighting the theme of transparency and strategy. The background is a soft, light gradient, emphasizing the clarity and simplicity of the composition in piece about artificial general intelligence and AI inference.
Achieving AGI will require further advances in algorithms, computing and data than what powers the models of today. Mimicking complex human behavior such as creativity, perceptions, learning and memory will require embodied cognition or learning from a multitude of senses or inputs.shahrilkhmd on Adobe Stock Photos

Human intelligence is heavily based on logical reasoning. We understand cause and effect, deduce information from existing knowledge and make inferences. Reasoning algorithms let a system traverse knowledge representations, drawing conclusions and finding solutions. This goes beyond basic pattern matching, enabling a more humanlike problem-solving ability. Replicating similar processes is fundamental for an AI to achieve AGI.

The timing of artificial general intelligence remains uncertain, but when it does, it’s going to impact our lives, businesses and society significantly.

The real power of AI technology is still ahead of us.

Related Article: Can We Fix Artificial Intelligence’s Serious PR Problem?

Enabling AGI by Shifting Focus to Inference

One of the prerequisites for achieving artificial general intelligence is the capability for AI inference, which is when an AI model produces accurate predictions or conclusions. Much of the computing power today is focused on model training. Model training is the stage when data is fed into a learning algorithm to produce a model. Training enables AI models to make accurate predictions when prompted.

AI can be divided into two major market segments — training and inference. Today, many companies are focused on creating high-performance hardware for data center providers to conduct massive AI model training. For instance, Nvidia, controls more than 95% of the specialized AI chip market. They sell to major tech companies like Amazon, Meta, and Microsoft, which are believed to make up roughly 40% of its revenue.

However, the market will soon shift its focus to building inferencing infrastructure for generative AI applications. The inferencing market will quickly grow as Fortune 500 companies that are currently testing generative AI applications move into production deployment. New applications will also emerge that will require scale to support workloads across centralized cloud, edge computing and IoT (Internet of Things) devices.

Model training is a very computationally intensive process that takes a lot of time to complete. Inference is usually faster and much less resource-intensive. Inferencing boils down to running AI applications or workloads after models have been trained.

Inference is going to be 100 times bigger than training. Nvidia is really good at training but is not ideal for inference.

A pivot from training to inference may not be easy.

Dominance in Training Doesn’t Mean Dominance in Inference

Nvidia was founded in 1993 long before the AI craze we see today. They were not initially focused on supplying AI hardware and software solutions and instead focused on creating graphics cards. As the PC market expanded and new applications such as Windows and gaming became prevalent, it became necessary to have dedicated hardware to handle the complicated tasks of 3D graphics processing. The opportunity to create high-performance processing units to support intensive computational operations in the PC and gaming market was not something that happens very often.

It turns out Nvidia struck gold with its GPU architectures. GPUs are well suited for AI for three primary reasons. They employ parallel processing; the systems scale up through high-performance interconnections creating supercomputing capabilities and the software for managing and tuning the stack for AI is broad and deep.

The idea of having separate hardware existed before Nvidia came onto the scene. For instance, the first Atari video game consoles, shipped in the 1970s, had graphics chips inside. And IBM had released the Professional Graphics Controller (PGA) which used an onboard Intel 8088 microprocessor to do video tasks. Silicon Graphics Inc or SGI also emerged as a dominant graphics player in the market in the late 1980s.

Things changed rapidly in 1993 with the release of a 3D game called Doom by game developer Id Software. Doom was the first mature, action-packed first-person shooter game on the market. Quake quickly followed and offered brand-new technical breakthroughs such as full real-time 3D rendering and online multiplayer. This paved the way for the dedicated graphics card market.

Nvidia didn’t immediately rise to fame. The first product came in May 1995, called the NV1, which was a multimedia PCI card with graphics, sound, and gamepad support. However, the product flopped as the NV1 was not compatible with the leading graphics APIs at the time — OpenGL, 3Dfx’s Glide, etc. It wasn’t until the Riva 128, launched in 1997 that the company saw success. At the time of launch, Nvidia had less than six weeks of cash left in the bank!



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