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The DecoderJuly 30, 2026· 1 min read

Ex-OpenAI researcher bets $100 billion will flow into training data because scaling alone won't cut it

Ex-OpenAI researcher Andrew Ho predicts that AI labs will need to spend over $100 billion on targeted data collection to improve language models. This is because scaling alone won't solve the problem of models becoming too specialized.

What happened

Andrew Ho, a former OpenAI employee, is leaving the company to start a new venture focused on specialized training data. He believes that large language models are becoming too specialized, excelling in areas like coding and math but struggling in others. Ho thinks that the solution lies in targeted data collection, which will require significant investment.

Why it matters

As a business owner, you're likely using language models to automate tasks or improve customer service. If these models become too specialized, they may not be able to handle the nuances of your business. This could lead to errors, inefficiencies, and a negative impact on your operations.

The takeaway

You may need to consider investing in customized training data to ensure your language models are well-suited to your business needs. This could involve working with a data provider or developing your own targeted datasets.

Read the original at The Decoder

Our plain-English take, written from public reporting for operational business owners. Always read the original for full context.

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