What the heck is an LLM?

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Welcome to The Menu Magic - Finance & AI weekly newsletter

In today’s email:

• What the heck is an LLM?

• 5 trends in fintech

• Meme of the week

What the heck is an LLM?

Dear friend,

Today, let's unravel the mystery of Large Language Models (LLMs) in the simplest way possible. Picture a vast neural network, a digital brain, if you will, that's all about words - understanding them, processing them, and even creating them.

At its core, an LLM has two key components:

1. Parameters: Think of these as the 'knowledge' of the model - a massive set of numbers that are the model's weights. These parameters are more than just numbers; they include various settings, like the training data, model size, and even specific functions that give the LLM its unique abilities.

2. The Code: This is the magic wand that brings these parameters to life, running them and allowing the LLM to do its work.

So, what exactly does an LLM do with all these parameters and code? It's quite fascinating! Given a string of words, the LLM plays a guessing game, predicting the next word in the sequence. This might sound simple, but it's a complex task that requires the LLM to understand and interpret a vast amount of information about our world. All this knowledge is tightly packed into its parameters.

You might wonder how this all comes together. Well, let's take a real-world example. Imagine you're typing a message and can't think of the right word to use next. An LLM could suggest that word based on the context of your message. It's like having a super-smart friend who's read almost everything and can help you find just the right words!

But here's the real kicker: an LLM isn't just about predicting the next word. It can write whole paragraphs, answer complex questions, and even mimic human-like conversation. This capability opens up a world of possibilities, from creating more human-like chatbots to aiding in language translation, and so much more.

In essence, LLMs are like the wizards of the digital language world, transforming strings of words into meaningful dialogue, stories, and insights. As technology evolves, these models are getting smarter, more nuanced, and increasingly capable of understanding and interacting in human language. It's a fascinating field, blending the art of language with the precision of technology, and it's just getting started!

So, there you have it - a peek into the world of Large Language Models. It's an area where science fiction meets reality, and the possibilities are as vast as the model's parameters!

I hope this exploration has sparked your curiosity about LLMs. If you have any questions or thoughts, feel free to share. Let's continue this journey of discovery together in the fascinating world of AI and language!

If you want to watch a 1 hour Youtube video created by one of the founders of OPENAI explaining LLM in detail check what Andrej Karpathy said here

5 trends in fintech

Dear friend,

Today, we're diving into the top five trends shaping the future of fintech. Buckle up, as we embark on a journey through the evolving landscape of financial technology.

1. Legacy Bank Technology Gets an Upgrade: The fintech world is witnessing a monumental shift where traditional banking models are merging with cutting-edge Silicon Valley tech. This fusion marks a new era where the reliability of bank models meets the innovation of modern technology.

2. No Problem Too Boring for Fintech: Gone are the days when fintech was all about flashy, quick-to-build products. The focus has shifted towards solving complex, 'boring' problems. This change reflects a deeper understanding that real value often lies in addressing intricate and less glamorous issues.

3. The Future is Niche: The fintech landscape is increasingly moving towards niche digital products. This trend highlights a growing appetite for services tailored to specific needs and customer segments, moving away from a one-size-fits-all approach.

4. Emotion in Personal Financial Management (PFM): There's a growing trend towards incorporating emotional aspects into financial management tools. This movement is about understanding how money impacts happiness and well-being, moving beyond the traditional metrics of financial success.

5. Embedded Finance Uncovers New Problems: Embedded finance is shaking up the industry by highlighting and addressing previously overlooked problems in financial services. It's about embedding financial services into non-financial apps and websites, creating new opportunities and challenges.

As we observe these trends, it's clear that fintech is not just about technology; it's about reimagining finance in ways that resonate more closely with human needs and experiences. The future of fintech is not just about making transactions faster or more convenient; it's about making them more meaningful.

What do you think will be the next big thing in fintech? Are there any trends you're particularly excited about or skeptical of? Share your thoughts, and let's continue exploring this dynamic world together!

Catch up soon, and let me know what you think!

Meme of the week

I'd love to hear your feedback on today's newsletter! Is there a specific type of content you'd like to see more of in the future? Since I'll be releasing a new edition each week, I welcome any suggestions or requests you may have. Looking forward to hearing your thoughts!

The Menu Magic is written by Francisco Cordoba Otalora, an AI entrepreneur living in London.

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