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In May 2024, OpenAI released the latest model of ChatGPT, “GPT-4o”.

It is a cutting-edge multimodal AI that can process text, voice, and images in an integrated manner, and it is attracting attention because it will also be implemented in the free version of ChatGPT.

Generative AI has a major impact on the data centers that are being newly built by GAFA and other Japanese companies, and we would like to take a look at how OpenAI’s latest version of ChatGPT, “4o”, which is a representative example of generative AI, is different from the previous version.

What is GPT-4o?

ChatGPT-4o (Omni) is the latest model of ChatGPT announced by OpenAI in May 2024. Omni means “all” in Latin, and represents the ability to handle all information, including not only text but also images and voice, and perform any task.

Compared to the conventional model GPT-4 Turbo, the answer accuracy and speed have been overwhelmingly improved, and it has been upgraded in every respect, such as being able to have emotionally rich voice conversations like humans and reading the fine details of images.

What are the features of GPT-4o and how does it differ from other models?

The GPT series is a large-scale language model developed by OpenAI, and its performance improvement is remarkable.

GPT-3, announced in 2020, attracted attention as a large-scale model with 175B parameters. In 2022, GPT-3.5 was implemented in ChatGPT, widely publicizing the potential of language generation AI through dialogue with general users. And in 2023, GPT-4 showed the first step toward multimodalization.

GPT-4o is positioned as an extension of the evolution of this GPT series. However, it stands out from conventional GPTs in that it does not just improve performance, but also achieves smooth integrated processing of voice, images, and text.

The main evaluation points that have been significantly improved compared to conventional models are introduced below.

① Text accuracy

It boasts high accuracy in understanding and generating complex sentences. This allows for more natural and consistent text generation.

You can also easily create article structure plans, which are essential for writing.

② Text and voice response speed

New algorithms have improved text and voice response speeds, making real-time dialogue even smoother. In addition, the voice has intonation, making it feel like you are talking to a person.

③ Voice recognition and translation function

The accuracy of the voice recognition function has been improved, and the multilingual translation function has also been enhanced. This makes global communication more efficient.

It is also possible to translate in real time by recognizing and processing voice.

④ Improved image recognition function

Image recognition capabilities have also been improved, allowing the content of images to be analyzed with high accuracy and related information to be provided.

It is also possible to extract characters from image data. For characters that are difficult to read, characters can be inferred from other image data and extracted.

⑤ Security function

A new tokenizer has been introduced in 20 languages, including Japanese, and significant improvements have been made in terms of security. This has improved data security and processing efficiency, and has enabled fast and secure data processing while protecting user privacy.

Evolving ChatGPT

ChatGPT has added many surprising features in this update, such as improved image processing capabilities and the addition of a voice recognition function.

In the future, it will be possible to converse via real-time video, and a new voice mode is planned to be released that will allow the contents of the loaded video to be explained in voice.

The development of ChatGPT, which is leading the generative AI, will have a major impact on future data centers, so we will continue to watch the situation from time to time.

Meanwhile, as expectations grow for new functions to be developed in the future, power consumption is expected to increase several times over.

In Japan, how will the power shortage of newly opened data centers be resolved?

We will also be keeping a close eye on this.

On April 18, US Oracle announced it would invest $8 billion (approximately 1.2 trillion yen) in data centers in Japan over the next 10 years. Additionally, US OpenAI also announced its entry into the Japanese market.

Along with other major US cloud companies like Microsoft, the total amount of announced investments in Japan this year is approaching 4 trillion yen. What is behind these US cloud giants’ emphasis on data centers in Japan?

The Spread of Generative AI and Response to Security Risks

One underlying factor is the rapid spread of generative AI (artificial intelligence). Among user companies, the demand for cloud services to train and operate large language models, which serve as the foundation, is increasing. German research firm Statista predicts that the market size of data centers in Japan will reach approximately $24 billion by 2028, expanding to 1.4 times the size of 2023.

However, security risks associated with cloud services are emerging. Surveys by sources like the Nikkei indicate that about half of companies lack sufficient regulations regarding disclosure requests from authorities in various countries. Many Japanese companies depend on storing data overseas, with some even placing data in countries like China and Russia, where concerns about censorship exist, making immediate action necessary.

With heightened awareness of security and privacy, regulatory authorities in various countries and regions are increasingly emphasizing data sovereignty, managing their own data domestically. The Japanese government also restricts cross-border transfers of personal data under the Personal Information Protection Law. Japanese companies are being urged to manage sensitive data domestically.

To meet these needs, major US cloud companies are announcing large-scale investments in Japan one after another. The focus on Japan extends beyond the AI field. The world’s largest semiconductor foundry, Taiwan Semiconductor Manufacturing Company (TSMC), is investing about 1.3 trillion yen to mass-produce computing semiconductors at a factory built in Kumamoto Prefecture by the end of 2024. They have also decided to invest about 2 trillion yen in constructing a second factory aimed at commencing operations in 2027.

Previously, TSMC concentrated its production bases in Taiwan, but considering the risk of Chinese aggression, it is diversifying production bases to countries like Japan, the US, and Germany. The construction of the Kumamoto factory is part of this strategy, and the importance of Japan, where related industries gather and semiconductor demand is high, may further increase. This situation is likely to continue influencing the actions of major cloud companies.

AI as an Essential Element for Japan’s Economic Growth

In Japan, a country prone to earthquakes and high electricity costs, data center costs are considered higher compared to overseas. Nonetheless, US Amazon Web Services (AWS) and Google, which compete with Microsoft in cloud services, are also embarking on large-scale data center investments domestically.

Microsoft President Brad Smith stated about Japan, “With an aging and declining population, AI is an essential element for sustainable economic growth.”

Going forward, we should continue to pay attention to the potential of AI and the trends of major cloud companies for Japan’s economic growth.