Nearly two years ago, OpenAI debuted ChatGPT, its next-gen AI-driven chatbot. And with that launch, the firm kickstarted an AI frenzy that has since reshaped the global economy, the stock market, even parts of our daily lives. 

Now it appears that OpenAI is gearing up to do it all over again with a brand-new iteration. 

Reports have emerged suggesting that the company plans to launch its new AI model, dubbed “Strawberry,” this fall. 

But the real kicker here? Supposedly, Strawberry is capable of complex reasoning…

…Which means this encore launch has the potential to be even more impactful than ChatGPT’s initial debut. 

Everything we know about the top-secret project suggests that Strawberry represents a mind-boggling upgrade to current AI models. Therefore, its launch could propel us into an entirely new era, wherein AI is more capable than humans at nearly everything. 

Of course, this new era will be simultaneously exciting and frightening. It could mint fortunes – and kill jobs. It could – perhaps permanently – split society between the “haves” and “have-nots.” 

Regardless, Strawberry’s launch could be a landmark moment for the AI Boom.

And to understand why, we’ll delve deeper into the so-called “stages of AI.” 

Breaking Down the Levels of AI

According to OpenAI, there are five stages or levels of artificial intelligence: chatbots, reasoners, agents, innovators, and organizations. 

In Level 1 (L1AI), AI models are capable of conversational language but not much else. These chatbots can engage in simple dialogues, answer frequently asked questions, and perform basic tasks like setting reminders or providing weather updates. However, their responses are based on pre-programmed scripts and/or simple pattern matching. 

This is the level of AI we have today. Models like ChatGPT, Claude, and others can broadly be considered advanced L1AI. 

In Level 2 (L2AI), models are capable of reasoning. They go beyond simple pattern recognition and can engage in logical thinking, make inferences, understand cause-and-effect relationships, and solve problems by applying principles or rules learned during training. As such, these models go beyond just helping us automate tasks. They help us solve hard problems. 

L3AI is centered on models with enough complex reasoning and contextual understanding to create full autonomous systems. L4AI can create new things, while L5AI can run entire organizations. At L5, we’d have reached so-called Artificial General Intelligence (AGI): the technology’s endgame. 

Currently, we’re in the era of L1AI. And Strawberry would propel us into Level 2. 

L2AI: A Powerful Technological Leap

That is an enormous deal for two big reasons. 

First, in the era of L2AI, AI models will be capable of complex reasoning. That means they’ll be able to do a lot more than the current generation can. 

L1AI models – like ChatGPT-4o – perform well with tasks that require surface-level processing. Think text completion, basic translation, and generating routine responses. However, they struggle with tasks that require a deeper contextual understanding, making multi-step logical deductions, or integrating information from various sources. 

That is why, presently, most real-world AI applications are narrow in nature. Companies today are using AI to do specific things very well, such as automating call centers or drafting simple legal documents. 

L2 models will be able to handle more challenging tasks that require complex problem-solving. Therefore, real-world applications of L2AI models will be far broader than what’s presently possible with L1AI.

The Staggering Potential – and Risks – of Next-Gen AI

For example… 

We expect L2AI will be able to advance scientific research by analyzing large datasets, identifying complex patterns, generating hypotheses, even proposing novel research directions or suggesting experimental methods – things that current models cannot do. This will allow the world to make more scientific breakthroughs faster than ever before – while simultaneously creating a huge risk for research assistants. 

In the legal sphere, L2AI models will likely be able to analyze and compare cases to find precedents, suggest arguments, or identify potential outcomes based on legal texts and previous rulings. This could help top law firms create bulletproof cases and provide a high level of AI-powered counsel – while simultaneously creating a huge risk for paralegals and lower-quality law firms. 

Or what about in the medical field? L2AI models could evaluate a patient’s symptoms, medical history, and test results to make a complex diagnosis, even in cases with ambiguous or rare conditions. This may allow hospitals to expand medical care coverage – while posing a huge risk for nurses and other healthcare professionals. 

L2AI even has the potential to disrupt how we invest in the markets. Those next-gen models will probably be able to analyze economic indicators, company reports, and global events to predict potential market movements and suggest personalized investment strategies – creating a huge opportunity for investment advisors that leverage AI while posing a major threat to investment advisors that do not. 

If, indeed, we are racing toward L2AI with Strawberry’s launch this fall, then we are plunging into a world of both vast opportunities and risks. 

And such a world will require adept guidance to help identify the opportunities and avoid the risks. 

The Final Word

Now, here’s where things get interesting (as if they haven’t already)… 

As has been widely reported, OpenAI has partnered with Apple to bring next-gen AI to the iPhone via Apple Intelligence. And with Apple reportedly investing in OpenAI, it appears this partnership is being cemented right now. 

As it happens, Apple Intelligence is expected to launch this fall. So is Strawberry. 

Given that these two tech titans are strengthening their partnership through a reported investment, it seems likely that Apple Intelligence will incorporate Strawberry when it launches this fall…

…Meaning Strawberry could be integrated into every new iPhone that ships this holiday season. 

By Christmas 2024, tens of millions of people across the globe (if not more) could have L2AI, capable of complex reasoning, right in the palms of their hands. 

The implications of that are huge. So will the investment opportunities that emerge because of it. 

That’s why, over the past few months, we’ve been hunting for the best ways to invest in the Apple Intelligence ecosystem. 

And we think we’ve found the best opportunities available. 

Check them out now – before they soar to new heights with L2AI’s arrival.

_{On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.}

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.